The Central Bank of Nigeria (CBN) has announced a major overhaul of its cash-handling policies, removing the ceiling on cash deposits and raising the weekly withdrawal limit to N500,000 for individuals—a fivefold increase from the previous N100,000. Corporate accounts will now enjoy a weekly withdrawal limit of N5 million.
The changes, communicated in a circular titled “Revised Cash-Related Policies” and endorsed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department, are aimed at reducing the rising cost of managing physical cash, mitigating security risks, and tackling money-laundering vulnerabilities in Nigeria’s largely cash-driven economy.
According to the CBN, the previous restrictions were intended to encourage Nigerians to adopt electronic payment channels, but adjustments became necessary to reflect current economic realities.
Effective January 1, 2026, the circular stipulates the following key changes:
- The cap on cumulative deposits is abolished, and extra charges for exceeding deposit limits are removed.
- Individuals can now withdraw up to N500,000 weekly across all channels, while corporate entities can withdraw up to N5 million weekly. Amounts above these limits will attract excess-withdrawal fees of 3% for individuals and 5% for organizations, with revenue split 40% to the CBN and 60% to the servicing bank.
- The previous monthly special approval for higher withdrawals (N5 million for individuals and N10 million for corporates) has been scrapped.
- Daily ATM withdrawals remain capped at N100,000, contributing to the overall weekly limit. Over-the-counter withdrawals via third-party cheques remain capped at N100,000.
- Banks are instructed to ensure ATMs are fully stocked with all denominations.
The CBN emphasized that these new regulations do not apply to government revenue accounts, microfinance banks, or primary mortgage banks domiciled with commercial or non-interest banks. However, previous privileges for embassies, diplomatic offices, and donor agencies have been removed.
Banks are required to submit monthly compliance reports to relevant supervisory departments to ensure adherence to the new guidelines.
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