The Central Bank of Nigeria (CBN) has abolished cash deposit limits and increased the weekly cash withdrawal threshold to N500,000 for individuals and N5 million for corporates, marking a major adjustment to the country’s cash-handling framework.
The policy shift, contained in a circular titled “Revised Cash-Related Policies” and signed by Dr. Rita Sike, Director of Financial Policy and Regulation, takes effect on January 1, 2026. The CBN said the decision aligns with ongoing efforts to cut cash-management costs, address security concerns and reduce exposure to money-laundering risks linked to Nigeria’s dependence on cash.
The apex bank explained that earlier cash-restriction policies were designed to curb cash usage and accelerate electronic payments, but evolving economic realities now require a streamlined and updated approach. With the new circular, cumulative cash-deposit limits have been scrapped, and the charges previously applied on excess deposits have been removed.
The weekly cumulative withdrawal cap has been revised upward to N500,000 for individuals and N5 million for corporates. Withdrawals beyond these thresholds will attract excess-cash charges of 3 percent for individuals and 5 percent for corporate customers, shared between the CBN and the operating bank. The special monthly authorisation that allowed one-off high-value withdrawals has been discontinued.
ATM withdrawals remain limited to N100,000 daily and N500,000 weekly, forming part of the overall weekly limit across all channels, including POS transactions. All banks are directed to load all denominations in ATMs. The N100,000 ceiling on third-party cheque encashment remains in place and counts toward the weekly limit.
The circular also mandates banks to submit monthly compliance reports to the Banking Supervision Department, Other Financial Institutions Supervision Department and the Payments System Supervision Department.
The CBN clarified that accounts belonging to federal, state and local governments, as well as microfinance banks and primary mortgage banks operating through commercial and non-interest banks, are exempt from the new rules. The previous exemption for embassies, diplomatic missions and donor agencies has been withdrawn.
