The Central Bank of Nigeria has lifted long-standing cash deposit limits and increased the weekly cash withdrawal allowance for individuals from N100,000 to N500,000, in a major policy shift aimed at easing cash management pressures and addressing growing security concerns.
The new directive, contained in a circular signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, applies to all banks and financial institutions nationwide. The policy takes effect on January 1, 2026.
According to the CBN, the review became necessary to reduce the high cost of handling cash, modernise existing regulations, and minimize money laundering risks linked to heavy cash transactions.
> “With time, the need to streamline and update these provisions to reflect present-day realities became necessary,” Dr. Sike stated.
Under the revised framework, the fee previously charged on excess cash deposits has been abolished. Corporate entities can now withdraw up to N5 million weekly, while individuals are limited to N500,000. Withdrawals above these limits will attract penalties of 3% for individuals and 5% for corporates, shared in a 40:60 ratio between the CBN and the operating bank.
The CBN also clarified that daily ATM withdrawals remain capped at N100,000, with a weekly ceiling of N500,000, forming part of the overall withdrawal limit across all channels, including POS.
The circular further directed banks to load all denominations in ATMs and maintain the N100,000 cap on third-party cheque encashment, which will count toward weekly withdrawal totals.
Some exemptions apply: federal, state, and local government revenue accounts, as well as accounts held by microfinance and primary mortgage banks. However, embassies, diplomatic missions, and donor agencies—previously exempt—are now subject to the new rules.
Banks are also mandated to submit monthly compliance reports to the Banking Supervision, OFI Supervision, and Payment Systems departments.
The revised policy comes amid ongoing reforms aimed at strengthening Nigeria’s payment system and reducing the economy’s reliance on physical cash.
