The Central Bank of Nigeria (CBN) has announced the removal of restrictions on cash deposits and an upward review of the weekly cash withdrawal limit to N500,000, up from N100,000.
This was disclosed in a circular titled “Revised Cash-Related Policies” and signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department.
According to the CBN, the policy changes are part of ongoing efforts to reduce the rising cost of cash management, tackle security challenges, and address money-laundering risks tied to Nigeria’s heavy cash usage. The bank explained that earlier cash-related guidelines were introduced to reduce dependence on cash and promote electronic payments, but evolving realities now require updated measures.
Effective January 1, 2026, the circular outlined major adjustments:
The cumulative cash deposit limit has been completely removed, and charges previously applied to excess deposits have been discontinued.
The cumulative weekly cash withdrawal limit across all channels has now been set at N500,000 for individuals and N5 million for corporates. Withdrawals beyond these limits will attract excess charges as detailed in the circular.
The special monthly approval that previously allowed individuals to withdraw N5 million and corporates N10 million once a month has been abolished.
For ATM transactions, the daily withdrawal cap remains at N100,000, while the weekly limit stays at N500,000, which counts toward the overall withdrawal limit across all channels, including POS.
Excess withdrawals above approved thresholds will attract a 3% charge for individuals and 5% for corporates, shared between the CBN (40%) and the operating bank (60%).
Banks have also been instructed to stock ATMs with all currency denominations. The existing restriction on over-the-counter encashment of third-party cheques remains at N100,000, which will also count toward the weekly withdrawal limit.
Additionally, banks must submit monthly reports to supervisory departments, including the Banking Supervision Department, Other Financial Institutions Supervision Department, and Payments System Supervision Department.
The CBN further clarified that revenue-generating 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 these new rules. However, the long-standing exemption for embassies, diplomatic missions, and donor agencies has now been withdrawn.
