BREAKING: CBN scraps deposit cap, adjusts withdrawal limits to N500,000

The Central Bank of Nigeria (CBN) on Tuesday announced a sweeping review of its cash-handling rules, removing the long-standing limit on cash deposits and raising the weekly cash withdrawal ceiling across all channels to N500,000, up from N100,000.

The policy update was contained in a circular titled “Revised Cash-Related Policies” and signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department.

According to the apex bank, the changes form part of efforts to cut the rising cost of cash management, strengthen security around cash movement, and further curb money-laundering risks in a country where cash still plays a heavy role in daily transactions. It explained that earlier restrictions were designed to encourage electronic payments, but the evolving financial landscape now requires a recalibration of those policies.

Effective January 1, 2026, the CBN announced major adjustments. The cumulative deposit limit has been scrapped, and banks will no longer charge customers for depositing beyond set thresholds. Weekly withdrawal limits have also been expanded to N500,000 for individuals and N5 million for corporates, with withdrawals above these limits attracting excess charges.

The circular also abolished the special monthly authorisation that previously allowed individuals to take out N5 million and corporates N10 million once a month.

For ATM users, daily withdrawals remain capped at N100,000, with a maximum of N500,000 per week, forming part of the overall weekly limit for all channels, including POS transactions. Withdrawals above the threshold will attract 3% excess-withdrawal fee for individuals and 5% for corporates, with the charges shared 40% to the CBN and 60% to the issuing bank.

Banks have been directed to stock ATMs with all denominations, while the limit on third-party cheque encashment remains N100,000, which will also count toward a customer’s weekly limit.

In addition, banks must submit monthly reports to the CBN’s supervisory departments, including Banking Supervision, Other Financial Institutions Supervision, and Payments System Supervision.

The CBN clarified that federal, state, and local government revenue accounts—as well as accounts of microfinance and primary mortgage banks—are exempt from the new rules. However, embassies, diplomatic missions, and donor agencies, which previously enjoyed exemptions, will now operate under the revised withdrawal and excess-fee guidelines.