CBN Removes Deposit Limits, Raises Weekly Withdrawal Threshold to N500,000

CBN Removes Deposit Limits, Raises Weekly Withdrawal Threshold to N500,000
The updated rules are part of ongoing efforts to reduce the rising cost of cash management
Banks have been directed to load ATMs with all currency denominations

The Central Bank of Nigeria (CBN) has announced major revisions to its cash handling policies, removing cash deposit limits and increasing the weekly cash withdrawal limit for individuals from N100,000 to N500,000.

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Eko Hot Blog reports that the changes were disclosed in a circular issued to banks and other financial institutions, signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department. She said the updated rules are part of ongoing efforts to reduce the rising cost of cash management, address security concerns, and curb money laundering risks linked to heavy cash usage.

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According to Sike, earlier cash-related policies were introduced to promote electronic payment channels and reduce reliance on physical cash. However, evolving economic realities made it necessary to streamline and update these provisions.

Effective January 1, 2026, the cumulative cash deposit limit will be removed, and the charges previously applied to excess deposits will no longer be enforced.

The CBN also reviewed weekly withdrawal limits across all channels, raising the cap to N500,000 for individuals and N5 million for corporate organisations. Withdrawals exceeding these thresholds will attract excess withdrawal charges as stipulated by the new guidelines. Additionally, the special monthly authorisation previously allowing individuals to withdraw N5 million and corporates N10 million once a month has been abolished.

CBN Removes Deposit Limits, Raises Weekly Withdrawal Threshold to N500,000 — ATM

For Automated Teller Machines (ATMs), the daily withdrawal limit remains N100,000, with a weekly maximum of N500,000, which forms part of the overall weekly withdrawal limit for all channels, including POS transactions.

Excess cash withdrawals will attract charges of 3% for individuals and 5% for corporates, shared in a 40:60 ratio between the CBN and the operating financial institution.

Banks have been directed to load ATMs with all currency denominations, while the limit on over-the-counter cashing of third-party cheques remains fixed at N100,000 and will count toward the weekly withdrawal limit. Institutions are also required to submit monthly compliance reports to the Banking Supervision Department, Other Financial Institutions Supervision Department, and the Payments System Supervision Department.

Sike noted that the revised limits do not apply to revenue-generating accounts of federal, state, or local governments, nor to accounts belonging to microfinance banks and primary mortgage banks held with commercial and non-interest banks. However, the long-standing exemption for embassies, diplomatic missions, and aid-donor agencies has been removed.