The Central Bank of Nigeria (CBN) has removed cash deposit limits and increased the weekly cash withdrawal threshold from N100,000 to N500,000.

The policy changes were contained in a circular issued to all banks and other financial institutions, signed by Dr. Rita Sike, Director, Financial Policy and Regulation Department.

Dr. Sike said the revisions formed part of ongoing efforts to moderate the rising cost of cash management and address emerging security concerns. She noted that the measures were also intended to curb money-laundering risks associated with heavy reliance on cash.

According to her, earlier cash-related policies, introduced in response to evolving economic conditions, were designed to reduce cash usage and promote the adoption of electronic payment channels. “However, with time, the need to streamline and update these provisions to reflect present-day realities became necessary,” she added.

She stated that, with effect from 1 January 2026, the cumulative cash deposit limit would be removed and the fee previously charged on excess deposits would no longer apply.

The director said the cumulative weekly cash withdrawal limit across all channels had been reviewed to N500,000 for individuals and N5 million for corporates. “Withdrawals above these thresholds will attract excess-withdrawal charges as specified,” she said.

She added that the special monthly authorisation that allowed individuals to withdraw N5 million and corporates N10 million once a month had been abolished.

For Automated Teller Machines (ATMs), daily withdrawals remain capped at N100,000 per customer, with a maximum of N500,000 weekly. This forms part of the overall weekly withdrawal limit applicable across all channels, including point-of-sale (POS) transactions.

Dr. Sike said excess withdrawals above the stipulated limits would attract a charge of three per cent for individuals and five per cent for corporates. She explained that the charges would be shared in a ratio of 40 per cent to the CBN and 60 per cent to the operating bank or financial institution.

She directed banks to load all currency denominations in ATMs, while the existing limit on over-the-counter encashment of third-party cheques remains pegged at N100,000. Such withdrawals, she said, would count as part of the cumulative weekly limit.

The director added that banks were required to render monthly returns to the relevant supervisory departments, including the Banking Supervision Department, the Other Financial Institutions Supervision Department, and the Payments System Supervision Department.

Dr. Sike said revenue-generating accounts of federal, state, and local governments were exempted from the new withdrawal rules. Accounts of microfinance banks and primary mortgage banks held with commercial and non-interest banks were also exempted.

However, she noted that the long-standing exemption previously granted to embassies, diplomatic missions, and aid-donor agencies had been removed.