The Central Bank of Nigeria (CBN) has lifted the cap on cash deposits and raised the weekly cash withdrawal limit across all channels to N500,000 for individuals, up from N100,000, in a major review of its cash-management framework.
The new policy, contained in a circular titled “Revised Cash-Related Policies” and signed by Dr. Rita Sike, Director of Financial Policy and Regulation, takes effect January 1, 2026.
The CBN said the review aligns with efforts to reduce the rising cost of cash management, bolster security, and curb money-laundering risks linked to Nigeria’s heavy cash usage. It added that earlier cash policies were introduced to encourage electronic payments, but prevailing realities necessitated a streamlining of the rules.
Under the revised guidelines, the apex bank removed the cumulative deposit limit, scrapping all associated excess-deposit charges.
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The weekly withdrawal limit has been increased to N500,000 for individuals and N5 million for corporates. Withdrawals above these thresholds will attract excess-cash charges, while the special monthly authorisation for large withdrawals—N5 million for individuals and N10 million for corporates—has been discontinued.
For ATMs, daily withdrawals remain pegged at N100,000, with a maximum of N500,000 weekly, which forms part of the overall withdrawal limit applicable to all channels, including POS terminals.
Excess-cash withdrawals above approved limits will now attract 3 per cent charges for individuals and 5 per cent for corporates, to be shared in a 40:60 ratio between the CBN and the operating financial institution.
The circular also mandates banks to load all currency denominations in ATMs. The existing N100,000 limit on third-party cheque encashment remains in place and will count toward a customer’s cumulative weekly withdrawal.
Banks are further required to file monthly compliance returns to the Banking Supervision Department, Other Financial Institutions Supervision Department, and Payments System Supervision Department.
The CBN clarified that revenue accounts of federal, state and local governments, as well as accounts of microfinance and primary mortgage banks held with commercial and non-interest banks, are exempt from the new withdrawal and fee rules. However, exemptions previously granted to embassies, diplomatic missions and donor agencies have been withdrawn.
