The Central Bank of Nigeria, CBN, has announced major adjustments to its cash-handling policy, abolishing the ceiling on cash deposits and expanding the weekly withdrawal limit across all platforms to N500,000, a significant rise from the previous N100,000.
The development was announced in a circular issued to financial institutions and titled “Revised Cash-Related Policies”, endorsed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department.
In the document, the apex bank stated that the overhaul aligns with efforts to curb the surging cost of managing physical cash, tackle security risks, and stem money-laundering vulnerabilities linked to Nigeria’s cash-driven economy.
The CBN further said that although earlier cash directives were created to push Nigerians toward electronic payment options, a review became necessary to align with current economic conditions.With effect from January 1, 2026, the circular listed several major amendments. The cap on cumulative deposits has been abolished, and additional charges for surpassing former deposit limits have been eliminated.
The bank also announced a fresh cumulative withdrawal ceiling of N500,000 weekly for individuals and N5 million for corporate entities across all access points. Any amount above the stated limits will incur excess-withdrawal fees as outlined in the new guidelines.
The earlier monthly special approval which permitted individuals to draw N5 million and corporates N10 million once every month has now been scrapped.
According to the CBN, customers who make use of ATM will still be restricted to N100,000 daily, with a total weekly limit of N500,000, which contributes to the overall weekly withdrawal total applicable to ATMs, POS machines, and other channels.
The apex bank further said that withdrawals exceeding the approved thresholds will attract charges of 3% for individuals and 5% for organisations, to be split 40% to the CBN and 60% to the servicing bank or financial institution.
The circular also added that banks have been instructed to ensure ATMs are stocked with all available currency denominations. Meanwhile, the ceiling on over-the-counter withdrawals using third-party cheques remains at N100,000, which will also count toward a customer’s weekly limit.
Furthermore, deposit money banks are mandated to submit monthly compliance reports to departments responsible for supervision, including Banking Supervision, Other Financial Institutions Supervision, and Payments System Supervision.
The circular clarified that the new rules will not apply to revenue-collecting accounts operated by federal, state, or local governments.
Accounts belonging to microfinance banks and primary mortgage banks domiciled with commercial or non-interest banks also remain exempt.
However, the previous privileges granted to embassies, diplomatic offices, and donor agencies have been withdrawn.

Published by:
Adetayo Omotoyosi Adeolu