The Central Bank of Nigeria (CBN) has announced a fresh review of cash withdrawal and deposit policies, aimed at strengthening cash management, improving security, and accelerating the adoption of electronic payment channels across the country.
The revised framework, which will take effect from January 1, 2026, applies nationwide and introduces significant changes for both individual and corporate bank customers.
No Cap on Cash Deposits
Under the new policy, customers will no longer face any cumulative limits on cash deposits. In addition, all charges previously applied to excess cash deposits have been completely removed, offering greater flexibility for individuals and businesses that handle large volumes of cash.
Weekly Cash Withdrawal Limits Introduced
While deposits are now unrestricted, the CBN has set clear limits on cash withdrawals:
- Individuals: A maximum of ₦500,000 per week. Withdrawals above this threshold will attract a 3% charge on the excess amount.
- Corporate customers: A weekly limit of ₦5,000,000, with withdrawals beyond this limit subject to a 5% fee on the excess.
The apex bank also confirmed that special approvals previously granted for higher monthly cash withdrawals have been discontinued.
ATM and POS Withdrawals Count Toward Limits
The updated policy places stricter controls on ATM usage:
- Daily ATM withdrawal limit is capped at ₦100,000 per customer
- Weekly ATM withdrawal limit remains ₦500,000
Notably, cash withdrawals made via ATMs and Point-of-Sale (POS) terminals will now be aggregated and counted as part of the customer’s weekly withdrawal limit.
Third-Party Cheque Encashment Restricted
Over-the-counter encashment of third-party cheques remains limited to ₦100,000. This amount will also be included in the customer’s weekly cash withdrawal calculation.
Push for Digital Payments
The CBN reiterated that the revised measures are designed to promote safer and more efficient transactions by encouraging customers to embrace digital banking channels, including mobile banking, online transfers, and other electronic payment options.
Banks have been advised to guide customers through the transition and provide support via relationship managers and branch networks nationwide.
With the policy shift, the CBN continues its broader push toward a more cash-lite economy while balancing convenience, security, and financial system stability.
