CBN Lifts Cash Deposit Limits, Hikes Weekly Withdrawal Cap to N500,000 for Nigerians

The Central Bank of Nigeria (CBN) has announced the removal of cash deposit limits and increased the weekly cash withdrawal threshold for individuals to N500,000, up from the previous N100,000. Corporate customers can now withdraw up to N5 million weekly.

The changes were outlined in a circular titled “Revised Cash-Related Policies”, signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department. The new measures will take effect from January 1, 2026.

The apex bank said the policy revisions are aimed at easing the rising cost of cash management, improving security, and reducing money laundering risks linked to Nigeria’s heavy reliance on cash transactions. While previous policies encouraged electronic payment adoption, the CBN noted that updating the rules to reflect current realities had become necessary.

Key changes include:

• Removal of cumulative deposit limits and associated excess deposit fees.
• Weekly withdrawal limits of N500,000 for individuals and N5 million for corporates, with excess withdrawals attracting charges of 3% for individuals and 5% for corporates.
• Abolition of the previous special monthly authorisation allowing N5 million for individuals and N10 million for corporates.
• Daily ATM withdrawals remain capped at N100,000, contributing to the overall weekly limit across all channels, including POS transactions.
• All currency denominations must now be loaded into ATMs.

Exemptions apply to revenue-generating accounts of federal, state, and local governments, as well as accounts of microfinance and primary mortgage banks. However, previous exemptions for embassies, diplomatic missions, and aid-donor agencies have been removed.

The CBN also directed banks to submit monthly reports on withdrawals and cash transactions to relevant supervisory departments, including Banking Supervision, Other Financial Institutions Supervision, and Payments System Supervision.

These reforms signal a significant shift in Nigeria’s cash management strategy, balancing accessibility for citizens with measures to mitigate financial risks.