The Central Bank of Nigeria has removed all cash-deposit limits for bank customers while maintaining strict weekly withdrawal ceilings under a revised set of cash-related policies that take effect on January 1, 2026.
The changes were announced in a circular issued on Tuesday and signed by the Director, Financial Policy and Regulation Department, Dr Rita Sike. The apex bank said the new framework was introduced “to reflect present-day realities” after years of adjustments to cash-management rules.
A key provision of the circular is the full abolition of the cumulative deposit limit. The CBN stated that “the cumulative deposit limit is hereby removed and the fee for excess deposit shall no longer apply,” ending the requirement for customers to pay charges when depositing cash above a set threshold.
In 2019, the CBN announced plans to start charging bank customers for cash deposits and withdrawals beginning September 19, 2019. In a publicly released circular, the apex bank explained that the new transaction fees policy was aimed at reducing the amount of cash in circulation and enhancing the collection of government revenues.
The apex bank stated that the charges were initially applicable only to bank customers in Lagos, Ogun, Kano, Abia, Anambra, Rivers, and the Federal Capital Territory. However, it indicated that by March 31, 2020, the implementation of the cashless policy would be expanded nationwide.
In December 2023, the CBN issued a directive to banks, other financial institutions, and non-bank financial institutions, suspending the previously imposed processing charges on large cash deposits. However, such charges have now been scrapped, according to the news CBN circular.
While the CBN removed limits on deposits, the apex bank retained the cumulative weekly withdrawal limits. Individuals will continue to face a ceiling of N500,000 across all channels, while corporates remain restricted to N5m.
According to the circular, withdrawals above these limits “shall attract fees of 3 per cent and 5 per cent to individual and corporate customers, respectively, on the excess amount withdrawn.” The fee is to be shared between the CBN and the financial institution in a 40:60 ratio.
The circular also confirmed that the special approval for monthly withdrawals of N5m by individuals and N10m by corporates “shall no longer apply.” For ATM transactions, customers will remain limited to N100,000 daily and up to N500,000 weekly, with ATM and PoS withdrawals forming part of the cumulative weekly ceiling.
All denominations may now be loaded in ATMs under the revised rules. The limit on over-the-counter encashment of third-party cheques remains unchanged at N100,000, and the bank emphasised that any withdrawal under this category “will form part of the cumulative weekly withdrawal.
Banks must also render monthly returns to the relevant supervisory departments on cash-withdrawal transactions above the specified limit and on cash deposits. Deposit Money Banks are required to create separate internal accounts to warehouse charges collected on excess withdrawals.
Some exemptions were retained, including revenue-generating accounts of federal, state, and local governments, and accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks.
However, the CBN stated that “the exemption of embassies, diplomatic missions and aid-donor agencies from specific cash policies shall no longer apply.” The circular supersedes the provisions of 24 previous directives by the apex bank.
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