BREAKING: CBN lifts deposit limit, raises weekly withdrawal cap to N500,000

The Central Bank of Nigeria (CBN) has announced major adjustments to the nation’s cash-handling regulations, removing the limit on cash deposits and raising the weekly cash withdrawal ceiling across all channels to N500,000, up from N100,000.

The new policy 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 revision is part of ongoing efforts to reduce the rising cost of cash management, tackle security concerns, and minimise money laundering risks linked to Nigeria’s heavy reliance on physical cash.

The CBN explained that while earlier cash-related directives were introduced to push Nigerians toward electronic payment systems, evolving realities have made a review necessary.

Effective January 1, 2026, several major changes will take effect.

The CBN has removed the cumulative deposit limit, meaning customers can now deposit any amount without paying the previously imposed penalty for excess deposits.

The bank also announced a significant revision to the withdrawal framework: individuals can now withdraw up to N500,000 weekly, while corporate bodies can withdraw N5 million weekly across all channels.

Withdrawals beyond these limits will attract excess withdrawal charges in line with the circular.

The special monthly dispensation that allowed individuals to withdraw N5 million and corporates N10 million has been abolished.

ATM withdrawals remain restricted to N100,000 daily, with a total cap of N500,000 weekly, counting as part of the overall withdrawal limit.

Fees for exceeding the new withdrawal thresholds have been set at 3% for individuals and 5% for corporates, shared between the CBN and banks in a 40:60 ratio.

Banks have also been instructed to load all denominations in ATMs. Meanwhile, the limit on third-party cheque encashment remains at N100,000, and such withdrawals will count toward the weekly total.

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

Very Nigerian also reports that the CBN noted that government revenue accounts at all tiers, as well as the accounts of microfinance banks and primary mortgage banks held with commercial and non-interest banks, are exempted.

However, it removed the longstanding exemption previously granted to embassies, diplomatic missions, and aid-donor agencies.

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