In a move that marks one of its most significant cash-policy overhauls in recent years, the Central Bank of Nigeria (CBN) has officially removed the long-standing limit on cash deposits and raised the weekly withdrawal allowance for individuals to N500,000—a five-fold increase from the previous N100,000 cap.
Corporate account holders will now be able to take out as much as N5 million per week, offering businesses more breathing room for cash-based operations.
The announcement came through a new circular titled “Revised Cash-Related Policies”, signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department.
The CBN explained that the fresh adjustments were driven by rising cash-management costs, persistent security concerns, and the need to curb money-laundering risks tied to Nigeria’s heavy reliance on physical cash.
While the bank acknowledged that its earlier policies were aimed at pushing Nigerians toward digital payments, it noted that evolving economic realities made a policy rethink both practical and necessary.
Beginning January 1, 2026, the deposit cap will be completely removed—meaning customers can lodge any amount without worrying about penalties. However, withdrawing beyond the newly approved weekly limits will still attract charges.
The previous special authorization for larger monthly cash withdrawals—N5 million for individuals and N10 million for corporates—has also been discontinued.
Daily ATM limits remain fixed at N100,000, and this forms part of the new weekly N500,000 allowance, which also covers POS withdrawals. Any withdrawal above the threshold will attract a 3% fee for individuals and 5% for companies, a cost shared between the CBN and the customer’s bank.
Banks are also expected to maintain current operational standards, including loading all currency denominations in ATMs and upholding the N100,000 over-the-counter limit on third-party cheques. They must also submit monthly compliance reports to the regulator.
Certain institutions—such as government revenue accounts, microfinance banks, and primary mortgage banks—will be exempt from the revised rules. However, embassies, diplomatic missions, and international aid agencies will no longer enjoy exemption status.
With the new policy, the CBN aims to strike a balance between tightening financial oversight and giving Nigerians more flexibility in managing their cash needs—signaling a more adaptable, responsive approach to monetary regulation.
