CBN removes deposit limits, raises weekly withdrawal cap

The Central Bank of Nigeria (CBN) has announced major changes to its cash-handling policies, abolishing the ceiling on cash deposits and raising the weekly withdrawal limit across all channels to N500,000 for individuals, a significant increase from the previous N100,000.

The policy shift was communicated in a circular titled “Revised Cash-Related Policies”, signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department.

According to the apex bank, the overhaul is aimed at reducing the cost of managing physical cash, enhancing security, and mitigating money-laundering risks in Nigeria’s largely cash-driven economy. While earlier directives encouraged Nigerians to adopt electronic payment methods, the CBN said a review was necessary to align with current economic realities.

Effective January 1, 2026, the circular abolishes the cap on cumulative deposits and eliminates previous penalties for exceeding deposit limits. Weekly withdrawal limits have been increased to N500,000 for individuals and N5 million for corporate entities across all access points. Any withdrawal above these thresholds will incur excess-withdrawal fees.

The prior monthly special approval, which allowed individuals to withdraw N5 million and corporate entities N10 million once a month, has been scrapped. Daily ATM withdrawals remain capped at N100,000, contributing to the overall weekly limit.

Withdrawals beyond the approved thresholds will attract charges of 3% for individuals and 5% for organizations, with 40% of the fee going to the CBN and 60% to the servicing bank. Banks are also required to ensure ATMs are stocked with all available currency denominations. Over-the-counter withdrawals using third-party cheques remain limited to N100,000, counting toward the weekly withdrawal total.

The circular clarified that the new rules will not apply to revenue-collecting accounts of federal, state, or local governments, nor to accounts of microfinance and primary mortgage banks domiciled with commercial or non-interest banks. However, previous privileges for embassies, diplomatic offices, and donor agencies have been withdrawn.

Additionally, deposit money banks are mandated to submit monthly compliance reports to the relevant supervisory departments, including Banking Supervision, Other Financial Institutions Supervision, and Payments System Supervision.