CBN : Cash Deposit Limit Scrapped, Withdrawal Cap Jumps to ₦500,000 Weekly in Major Policy Shake-Up
By Passman Akpos
The Central Bank of Nigeria (CBN) has announced its most sweeping changes to the nation’s cash-handling rules in years, removing all limits on cash deposits and raising the weekly cash withdrawal ceiling for individuals to ₦500,000, up from the current ₦100,000.
The explosive policy shift was revealed in a new circular titled “Revised Cash-Related Policies”, signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department.
According to the apex bank, the new rules—effective January 1, 2026—are part of efforts to tackle soaring cash management costs, security concerns around cash movement, and money laundering risks stemming from Nigeria’s heavy cash economy.
Key Highlights of the New CBN Directives
🔹 Cash Deposit Limits Scrapped CompletelyThe long-standing cumulative deposit limit has been abolished. Banks will also stop charging fees on deposits above previous limits.
🔹 Weekly Withdrawal Limit Raised to ₦500,000Individuals can now withdraw up to ₦500,000 weekly, while corporates have a new limit of ₦5 million across all channels.Withdrawals beyond these thresholds will attract excess charges of
3% for individuals
5% for corporatesThese charges will be split 40% to the CBN and 60% to the bank.
🔹 Special Monthly Withdrawal Waiver AbolishedThe previous provision that allowed individuals to withdraw ₦5 million and corporates ₦10 million once a month has now been cancelled.
🔹 ATM Withdrawals Still CappedDaily ATM withdrawals remain at ₦100,000, with a weekly maximum of ₦500,000—which is part of the overall limit across all channels.
🔹 Banks Must Load All Denominations in ATMsThe regulator ordered banks to ensure all denominations are available on ATM machines nationwide.
🔹 Third-Party Cheque Encashment Still Limited Over-the-counter withdrawals for third-party cheques remain capped at ₦100,000 and will be counted toward the weekly withdrawal limit.
Compliance and Exceptions
Banks must file monthly compliance reports to the CBN’s supervisory departments, including Banking Supervision, OFI Supervision, and Payments Systems Supervision.
The CBN also clarified categories of accounts exempt from the new rules:
Government revenue accounts (federal, state, and local)
Microfinance banks
Primary mortgage banks
However, in a major policy reversal, embassies, diplomatic missions, and donor agencies will no longer enjoy exemption from cash withdrawal and excess-fee rules.
CBN’s Rationale
The apex bank explained that earlier cash-related policies aimed at reducing heavy reliance on physical cash and encouraging electronic transactions. But evolving economic realities, security incidents, and operational cost pressures necessitated an overhaul.
The new rules, the CBN said, are geared toward “streamlining policy provisions to reflect present-day realities” while still discouraging excessive cash usage in the financial system.
