KEY POINTS

• CBN scraps cumulative cash deposit limits nationwide.
• Weekly withdrawal cap raised to N500,000 for individuals.
• Corporate withdrawal ceiling set at N5 million weekly.

The Central Bank of Nigeria has scrapped the limit on cash deposits and raised weekly withdrawal caps in a major shift aimed at easing pressure on consumers and banks while tightening controls on illicit cash flows.

The regulator announced the changes in a circular titled “Revised Cash-Related Policies,” signed by Rita Sike, director of financial policy and regulation. The new rules take effect on January 1, 2026.

CBN seeks to balance cash use pressures

The bank said the deposit limits review reflects the need to streamline earlier restrictions introduced as cash demand surged and electronic payments grew. It said the previous limits aimed to reduce heavy cash use and curb laundering risks. But the cost of processing cash and new security concerns made the old rules harder to sustain.

The revised framework removes the cumulative deposit limit. It also eliminates the fee charged on large deposits. Banks will now process unlimited deposits without penalties.

Weekly withdrawals have been adjusted. Individuals can now pull up to N500,000 a week. Corporate customers can take N5 million. Withdrawals above these thresholds will attract charges listed in the circular. The CBN has abolished the special monthly window that allowed larger one-off withdrawals.

For ATMs, daily withdrawals remain capped at N100,000. Customers can take a total of N500,000 a week through machines. Those cash-outs count toward the overall weekly limit across all channels, including POS terminals.

Withdrawal charges and exemptions updated

Excess withdrawals will attract new fees. Individuals will pay 3 percent. Corporate customers will pay 5 percent. The charges will be shared between the CBN and the operating bank. The regulator will take 40 percent. Banks will retain 60 percent.

Banks have been told to stock all currency denominations in ATMs. The N100,000 limit on third-party cheque encashment remains in place. Those transactions will count toward the weekly withdrawal cap.

Lenders must submit monthly reports to supervisory departments across banking, other financial institutions and payments.

The CBN kept exemptions for revenue accounts of federal, state and local governments. Accounts of microfinance and primary mortgage banks also remain exempt. But embassies and donor agencies will no longer receive special waivers.