The Central Bank of Nigeria (CBN) has removed the limit on cash deposits and raised the weekly cash withdrawal limit across all channels to N500,000, up from N100,000.

 

 

 

The apex bank disclosed this in a circular to all banks titled “Revised Cash-Related Policies”, signed by Dr. Rita Sike, Director, Financial Policy & Regulation Department.

 

 

 

 

According to the CBN, the policy is designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.

 

 

 

“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels. With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,” the CBN stated.

 

 

 

 

 

Effective January 1, 2026, the circular announced several key changes. The cumulative deposit limit has been removed, and the fee previously charged on excess deposits will no longer apply.

 

 

 

The CBN also stated that the cumulative weekly withdrawal limit across all channels has been reviewed to N500,000 for individuals and N5 million for corporates. Withdrawals above these thresholds will attract excess withdrawal charges as specified in the circular. In addition, the special monthly authorisation that allowed individuals to withdraw N5 million and corporates N10 million once a month has been abolished.

 

 

 

For Automated Teller Machines (ATMs), daily withdrawal remains capped at N100,000 per customer, with a maximum of N500,000 weekly, which forms part of the overall weekly withdrawal limit applicable to all channels, including point-of-sale (POS) transactions.

 

 

 

 

The circular further disclosed that excess withdrawals above the stipulated limits will attract charges of 3 per cent for individuals and 5 per cent for corporate customers, shared in the ratio of 40 per cent to the CBN and 60 per cent to the operating bank or financial institution.

 

 

 

Banks have also been directed to load all currency denominations in ATMs, while the existing limit on over-the-counter encashment of third-party cheques remains pegged at N100,000. Such withdrawals will also be counted as part of the cumulative weekly limit.

 

 

 

Additionally, banks are required to render monthly returns to the relevant supervisory departments, including the Banking Supervision Department, Other Financial Institutions Supervision Department, and the Payments System Supervision Department.

 

 

 

The CBN clarified that revenue-generating accounts of federal, state, and local governments, as well as the accounts of microfinance banks and primary mortgage banks held with commercial and non-interest banks, are exempted from the new withdrawal and excess-fee rules. However, the long-standing exemption previously enjoyed by embassies, diplomatic missions, and aid-donor agencies has been removed.