CBN removes deposit limits, raises withdrawal thresholds

The Central Bank of Nigeria (CBN) has introduced major changes to Nigeria’s cash management framework, removing all limits on cash deposits and increasing weekly withdrawal thresholds for individuals and corporate bodies.

The new directives, issued in a circular released by the apex bank, will take effect from January 1, 2026.

According to the CBN, the decision to overhaul its cash-related policies is driven by the need to reduce the rising cost of managing physical currency, bolster security around cash movements, and curb money laundering by encouraging greater use of electronic payment channels.

In the circular, the CBN confirmed that “the cumulative limit on cash deposits is entirely removed, and the associated fee for excess deposits will no longer apply.”

The bank said this change is intended to ease the burden on individuals and businesses who operate cash-heavy activities, while also improving liquidity within the banking system.

Under the revised framework, weekly withdrawal limits across all channels—Over-the-Counter (OTC), Automated Teller Machines (ATMs), and Point of Sale (PoS) terminals—have been pegged at N500,000 for individuals and N5 million for corporate entities.

While banks must adhere to these thresholds, the CBN noted that withdrawals exceeding the limits will attract processing fees of 3 percent for individuals and 5 percent for corporate customers.

The circular clarified that daily ATM withdrawals remain capped at N100,000 per customer but must still fall within the overall weekly ceiling of N500,000 for individuals. It also announced the end of the special authorization that previously allowed individuals to withdraw N5 million once a month and corporate bodies N10 million once monthly.

In another adjustment, banks are now permitted to load all denominations of the naira in their ATMs, removing earlier restrictions that limited ATM cassettes to smaller notes.

The CBN also provided details on the sharing formula for the revenue generated from excess cash withdrawal fees. The circular states that 40 percent of such revenue will accrue to the CBN, while 60 percent will go to the bank or financial institution that processed the transaction.

Other components of the new cash policy were also clarified. The apex bank maintained the N100,000 over-the-counter limit for third-party cheque encashments, noting that any withdrawal through this channel will count toward the weekly withdrawal limit.

Deposit Money Banks (DMBs) and other financial institutions are additionally required to submit monthly reports detailing cash withdrawal transactions above the set limits and all cash deposit activities. To ensure transparency, banks must create dedicated internal ledger accounts to warehouse charges collected from excess withdrawals.

The circular also provided clarity on exemptions. Accounts belonging to the federal, state, and local governments, as well as accounts of microfinance banks and primary mortgage banks maintained with commercial and non-interest banks, will not be bound by the weekly withdrawal limits or the associated excess withdrawal fees.

Advertisement

However, the CBN confirmed that foreign embassies, diplomatic missions, and donor agencies would no longer enjoy exemptions previously granted under the old cash policy.

Describing the directive as mandatory, the CBN instructed all deposit-taking financial institutions in Nigeria to immediately begin preparations for full implementation on January 1, 2026.

The apex bank said the reforms are part of a broader effort to strengthen the efficiency of Nigeria’s financial system and to strike a balance between cash usage and digital payments in the country’s evolving economy.