Central Bank Removes Cash Deposit Limit, Raises Weekly Withdrawal Cap

The Central Bank of Nigeria (CBN), has reversed its earlier cash withdrawal limit and raised the threshold from N100,000 to N500,000, while also removing all charges on cash deposits.

The CBN, while reinstating a uniform nationwide cash-withdrawal limit, effective 1 January 2026, also terminated the special monthly cash-authorisation hitherto available to companies and high-volume cash users

The policy shift was announced by the director of the Financial Policy and Regulation Department, Rita I. Sike, in a circular dated December 2, 2025, marking a significant adjustment to the restrictions first introduced three years earlier.

Recall that on December 6, 2022, the CBN cut the withdrawal limit by 80 per cent when it reduced the allowable amount for individuals from N500,000 to N100,000, and by 83.33 per cent for corporates when it moved their limit to N500,000 from N3 million.

At that time, the apex bank also set N100,000 and N500,000 as the maximum amounts individuals and corporate organisations could withdraw over the counter beginning January 9, 2023.

Those measures formed part of a broader effort to reduce the volume of physical cash in circulation and accelerate the transition to electronic payments.

According to the new circular, the revised framework will take effect from January 1, 2026, and will apply nationwide to all deposit-taking financial institutions. The CBN stated that the cumulative deposit limit has now been removed entirely, and the fee previously charged on excess deposits has also been discontinued. It also explained that the cumulative weekly withdrawal limit across all channels has been set at N500,000 for individuals and N5 million for corporates, and that any withdrawals above these levels will attract excess withdrawal fees under the conditions highlighted in the circular.

The earlier arrangement that allowed individuals to withdraw N5 million and corporates N10 million once monthly with special authorisation has been scrapped. In addition, ATM withdrawal is now capped at N100,000 daily per customer, with a total weekly ceiling of N500,000. Withdrawals made through ATMs and point-of-sale terminals will count toward the weekly limit already established. Cash withdrawals above the approved levels will attract processing fees of three percent for individuals and five percent for corporates, and the charges collected will be shared between the Central Bank and the commercial banks in a 40–60 ratio.

The circular further disclosed that all currency denominations may now be loaded into ATMs, restoring flexibility in cash dispensing. The limit on over-the-counter encashment of third-party cheques remains at N100,000, and any amount withdrawn under this provision will form part of the weekly withdrawal limit. Banks are expected to render monthly returns on cash withdrawal transactions that exceed the stipulated limits, as well as returns on cash deposits, to the appropriate supervisory departments. Deposit Money Banks are also required to maintain internal ledgers dedicated to warehousing processing charges collected on withdrawals above the approved limits.

The CBN outlined specific exemptions to the new rules, noting that revenue-generating accounts of federal, state, and local governments, as well as accounts belonging to microfinance banks and primary mortgage banks with commercial and non-interest banks, will not be subject to the withdrawal ceilings or the excess withdrawal charges. However, exemptions previously enjoyed by embassies, diplomatic missions and aid donor agencies have been discontinued, meaning such entities must now comply fully with the revised policies.

In explaining the review, the Central Bank recalled that the country had implemented various cash-related policies over the years to reduce the economy’s heavy reliance on physical cash. These measures, the bank noted, were introduced to address the rising cost of cash management, tackle security risks and limit the potential for money laundering. The policies were also aimed at encouraging the adoption of alternative payment channels, particularly electronic platforms. With the passage of time, the bank said, it became necessary to streamline existing cash regulations to reflect evolving economic realities and improve efficiency across the financial system.

The CBN stated that the new circular does not invalidate the provisions of the circulars listed in Appendix 1, but it supersedes the circulars included in Appendix 2. It urges all financial institutions and stakeholders to comply fully with the revised guidelines.