Lagos, Nigeria
In a sweeping change, the CBN has scrapped all limits on cash deposits and significantly increased weekly cash withdrawal ceilings for individuals and corporate bodies.
The policy shift is contained in a circular titled “Revised Cash-Related Policies” signed by Dr. Rita I. Sike, Director of Financial Policy & Regulation. The new rules take effect on 1 January 2026.
The cumulative cap on cash deposits has been removed as depositors may now lodge any amount into their bank accounts without authorisation or penalty.
The weekly cash withdrawal limit across all channels has been raised to ₦500,000 for individuals and ₦5,000,000 for corporate entities.
Withdrawals above these limits will now attract excess-withdrawal fees of 3% for individuals and 5% for businesses; the fee proceeds will be shared between the CBN and the banks.
The previous “special monthly authorisation,” which allowed individuals to withdraw ₦5 million and corporates ₦10 million once a month, has been discontinued under the new framework.
Daily withdrawals via ATM remain capped at ₦100,000, with a weekly ATM cumulative cap of ₦500,000 and ATM withdrawals will count towards the new overall weekly withdrawal limit.
Banks have also been instructed to load all denominations (i.e. larger-value notes) into ATMs, ending prior restrictions to lower-value notes only.
Over-the-counter encashments of third-party cheques remain capped at ₦100,000. Such encashments will count toward the cumulative weekly withdrawal total.
The new withdrawal limits and surcharge regime do not apply to revenue-generating accounts of federal, state, and local governments, nor to accounts of microfinance banks and primary mortgage banks domiciled with commercial and non-interest banks.
Entities previously exempt such as embassies, diplomatic missions, and donor agencies will now be subject to the regulations beginning January 1, 2026.
The circular requires banks to submit monthly compliance reports. These should detail all cash deposits, withdrawals exceeding the approved limits, and the processing of excess-withdrawal charges.
According to the CBN, the previous cash-restriction policies were introduced to reduce cash-management costs, tackle security concerns associated with widespread physical cash usage, discourage illicit flows, and promote adoption of electronic payment channels.
However, with Nigeria’s large informal economy, low digital payment penetration in many areas, and continued heavy reliance on cash especially in rural and underserved communities
The CBN judged that a more flexible cash-handling framework has become necessary. The new policy aims to ease liquidity constraints for traders, small businesses, and households that depend on cash.
At the same time, by preserving withdrawal limits and levying surcharges for excess withdrawals, the bank retains oversight mechanisms intended to discourage hoarding of large amounts of cash or money laundering.
Many in the business community especially SMEs have welcomed the policy, anticipating improved liquidity, fewer transaction delays, and smoother cash flow, particularly in sectors and areas where electronic payments are not yet widespread.
On the other hand, consumer-advocacy and civil society organizations caution that while the flexibility is positive, enhanced verification requirements and the surcharge regime must not become unnecessary barriers especially for low-income or unbanked Nigerians who may lack formal documentation.
Analysts expect deposit volumes to rise in early 2026, potentially boosting household spending and reducing some of the cash-related frictions that have long impacted informal-sector participants and market operators.
CBN Announces Major Cash Policy Overhaul — Deposit Ceilings Removed, Withdrawal Limits Raised to N500,000 Ahead of 2026
