The Central Bank of Nigeria (CBN) has announced major adjustments to its cash-handling regulations, removing all limits on cash deposits and increasing the weekly cash withdrawal ceiling for individuals to N500,000. The previous limit was N100,000.
These updates were detailed in a circular titled “Revised Cash-Related Policies”, signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department, and sent to all financial institutions on Wednesday.
According to the apex bank, the new measures are part of broader efforts to tackle rising cash management costs, improve security around cash movements, and reduce the money laundering risks associated with Nigeria’s high dependence on physical cash.
The CBN explained that earlier cash policies were introduced to encourage electronic payments and reduce heavy cash transactions, but evolving economic realities necessitated a review.
Taking effect from January 1, 2026, the circular outlined several major changes. Key among them is the removal of cumulative deposit limits, along with the scrapping of charges previously imposed on deposits that exceeded set thresholds.
For withdrawals, the CBN raised the weekly limit to N500,000 for individuals and N5 million for corporate account holders. Transactions above these ceilings will now attract excess withdrawal charges as outlined in the circular. The special monthly withdrawal waiver—N5 million for individuals and N10 million for corporates—has also been discontinued.
The daily withdrawal cap for ATMs remains at N100,000, with a maximum of N500,000 per week, which contributes to the overall weekly withdrawal limit across all channels, including POS terminals.
Withdrawals that exceed the approved limits will attract extra fees of 3% for individuals and 5% for corporate entities, with the charges shared 40% to the CBN and 60% to the operating bank.
Banks have been instructed to load ATMs with all naira denominations and maintain the existing N100,000 limit on over-the-counter withdrawals using third-party cheques. These withdrawals will also count toward the weekly total.
Financial institutions must also submit monthly compliance reports to the relevant supervisory departments, including Banking Supervision, Other Financial Institutions Supervision, and Payment Systems Supervision.
The CBN further clarified that accounts belonging to federal, state, and local government revenue agencies, as well as those held by microfinance and primary mortgage banks, are exempt from the new withdrawal limits and excess fees. However, embassies, diplomatic missions, and donor-funded agencies will no longer enjoy previous exemptions under the revised framework.
