Nigeria’s central bank has scrapped cash-deposit limits and eased withdrawal restrictions in a major policy shift designed to reduce the cost of cash handling and tackle security and money-laundering concerns.
The Central Bank of Nigeria (CBN) announced the changes in a circular signed by Dr Rita Sike, Director of Financial Policy and Regulation, who said the update reflected the need to modernise earlier cash-related directives and adapt them to current economic realities.
Effective 1 January 2026, the cumulative limit on cash deposits will be removed, and charges previously applied to deposits exceeding set thresholds will cease. Weekly withdrawal limits have also been expanded: individuals will now be able to withdraw up to ₦500,000 per week, while corporate entities may access up to ₦5 million.
Withdrawals above these amounts will attract excess-withdrawal charges—3 per cent for individuals and 5 per cent for corporate customers—with proceeds shared between the CBN and financial institutions.
The central bank also abolished the special monthly approval system that allowed individuals and companies to withdraw ₦5 million and ₦10 million respectively.
ATM withdrawals remain capped at ₦100,000 per day per customer and ₦500,000 weekly, forming part of the broader weekly withdrawal ceiling that includes transactions conducted via POS terminals.
Banks have been directed to load ATMs with all currency denominations, while limits on over-the-counter encashment of third-party cheques remain fixed at ₦100,000.
Financial institutions must also submit monthly compliance reports to relevant supervisory departments within the central bank.
Sike noted that certain accounts—including those belonging to federal, state and local government revenue agencies, as well as microfinance and primary mortgage banks—will be exempt from the new restrictions. However, exemptions previously granted to embassies, diplomatic missions and donor organisations have been withdrawn.
