CBN Eases Cash Withdrawal Rules, Abolishes Deposit Limits

The Central Bank of Nigeria (CBN) has announced sweeping changes to its cash handling regulations, raising withdrawal limits and completely removing deposit restrictions in a move aimed at easing liquidity pressures across the country. The new policy becomes effective on January 1, 2026.

The directive, issued in a circular signed by Dr. Rita I. Sike, Director of the Financial Policy and Regulation Department, marks one of the most significant adjustments to the apex bank’s cash policy in recent years.

Under the revised framework, the weekly cash withdrawal limit for individuals has been increased from ₦100,000 to ₦500,000, applicable across all channels including ATM, POS, and over-the-counter withdrawals. Corporate organisations will now be able to withdraw ₦5 million weekly, a major jump from the previous ₦500,000 allowable limit.

In a major shift, the CBN has also scrapped all caps on cash deposits, removing associated processing fees and allowing individuals and businesses to lodge any amount of cash without penalties.

The policy revision includes adjustments in other key areas such as ATM withdrawal allowances, cheque withdrawals, enforcement charges, and currency loading protocols. ATMs may now dispense up to ₦100,000 daily, depending on bank configurations, while restrictions on denominations for ATM loading have been lifted entirely.

Charges for excess withdrawals will remain in force—3% for individuals and 5% for corporates—with revenue shared between the CBN (40%) and deposit money banks (60%). However, the apex bank has abolished the requirement for special approval for large monthly withdrawals previously set at ₦5 million for individuals and ₦10 million for corporate bodies.

According to the bank, these changes respond to current economic conditions, particularly high inflation and liquidity constraints, while sustaining efforts to reduce excessive reliance on cash in the financial system.

The circular noted that while access to physical cash is being expanded, banks must submit monthly reports on withdrawals exceeding the new limits and provide data on cash deposit patterns, enabling the CBN to monitor usage and maintain financial stability.

The CBN said the revised rules build on the 2022 cash-limit and naira redesign framework but are recalibrated “to reflect emerging realities and reduce hardship for households and businesses.”

The updated policy is expected to have a notable impact on small businesses, cash-based sectors, and rural communities that rely heavily on physical currency for daily transactions.