CBN Lifts Cash Deposit Limit, Confirms N500,000 Weekly Withdrawal Cap

The Central Bank of Nigeria (CBN) has implemented a key set of revisions to its cash policy aimed at
promoting financial inclusion while reducing transactional friction, according to recent regulatory
directives.
The most significant changes include the removal of the cumulative limit on cash deposits and the
confirmation of the N500,000 maximum weekly cash withdrawal for individuals.

The CBN has officially announced the removal of the cumulative limit on cash deposits. Under the
revised policy, the processing fee previously applied to cash deposits exceeding certain thresholds (such
as N500,000 for individuals) shall no longer apply.
This move is set to encourage greater participation in the formal banking system and simplify
transactions for businesses, especially those in the informal sector.

While the initial policy shifts in late 2022 had caused some public concern regarding low limits, the
current, verified policy confirms the following cumulative weekly withdrawal limits across all channels
(Over-The-Counter, ATM, and PoS):
Individuals: A maximum weekly withdrawal limit of N500,000.00.
Corporate Entities: A maximum weekly withdrawal limit of N5,000,000.00 (N5 million).
Note on Fees for Exceeding Limits: Cumulative weekly withdrawals that exceed these specified limits
shall continue to attract processing fees: 3% for individuals and 5% for corporate organizations.
According to the CBN’s latest circulars, the revised cash-related policies are set for mandatory
compliance by all deposit-taking financial institutions in Nigeria.

• Previous Status (Post-Dec 2022 Revision)
• Current Status (Effective Jan 1, 2026)
• Cash Deposit Limit & Fee
• Subject to cumulative limits, with processing fees on excess deposits.
• Limit Removed; fees for excess deposits are no longer applicable.
• Weekly Cash Withdrawal Limit (Individual)
• N500,000
• N500,000 (Confirmed and retained)
• Weekly Cash Withdrawal Limit (Corporate)
• N5,000,000
• N5,000,000 (Confirmed and retained)
• Exceptional Cash Withdrawal Authorization
• Special monthly authorization for N5 million/N10 million was permitted.
• This special authorization shall no longer apply.
• ATM Currency Denomination
• Only N200 and below were to be loaded in ATMs.
• All currency denominations may be loaded in ATMs.

These latest comprehensive regulatory directives, which supersede several older circulars, are set to
take effect nationwide from January 1, 2026.

These adjustments are part of the CBN’s broader mandate to refine the national Cashless Policy. The
decision to remove the deposit cap aligns with efforts to ease the operational burden on commercial
banks and customers, particularly small businesses that rely on cash transactions, while maintaining
control over the money supply.

Furthermore, the relaxation on ATM denomination loading is designed to improve cash availability and
circulation within the economy.
The central objective remains the encouragement of electronic payment channels to enhance
transparency and financial efficiency across the country.

By Oyinkansola Shittu.

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