CBN Abolishes Cash Deposit Limits, Increases Weekly Withdrawal Threshold to N500,000 for Individuals

*New regulation takes effect January 1, 2026

James Emejo in Abuja

The Central Bank of Nigeria (CBN) Wednesday removed all limits on cash deposits and raised the weekly cash withdrawal limit across all channels to N500,000 from N100,000.The revised policy which takes effect from January 1, 2026, was contained in a CBN circular issued to all banks titled, “Revised Cash-Related Policies”, which wad signed by Director, Financial Policy and Regulation Department, Dr. Rita Sike.The review is part of ongoing efforts to moderate the rising cost of cash management, address security concerns, and curb money laundering risks associated with the country’s heavy reliance on cash, the bank stated.The CBN also stated that the cumulative weekly withdrawal limit across all channels had 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 also been abolished.For Automated Teller Machines (ATMs), daily withdrawal remained 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 percent for individuals and 5 percent for corporate customers, shared in the ratio of 40 percent to the CBN and 60 percent to the operating bank or financial institution.The central bank further directed banks 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.The apex bank noted that the cash-related policies previously issued in response to evolving circumstances were aimed at reducing cash usage and promoting the adoption of electronic payment channels.However, with time, the need to streamline and update these provisions to reflect present-day realities became necessary.The cumulative deposit limit has been removed, and the fee previously charged on excess deposits will no longer apply.