The Central Bank of Nigeria (CBN) has officially scrapped the cumulative cash deposit cap and raised the weekly cash withdrawal limit for individuals and businesses in a major overhaul of the country’s cash-handling rules. The reforms, announced in a circular signed on December 2, 2025, reflect a broader effort to reduce cash-management costs, enhance security around cash movement, and curb money-laundering risks in Nigeria’s heavily cash-dependent economy.

What Exactly Has Changed

• The previous limit on total cash deposits has been removed. Individuals and corporate customers can now deposit cash without facing deposit-threshold restrictions or related fees.
• The new weekly cash withdrawal limit across all channels (ATMs, POS, over-the-counter) for individuals is now ₦500,000 — a substantial increase from the previous ₦100,000 limit.
• Corporate account holders may now withdraw up to ₦5,000,000 per week under the revised policy.
• Withdrawals exceeding the specified limits will attract excess-withdrawal fees: 3% for individuals and 5% for corporate accounts. The fee revenue will be shared between the CBN (40%) and the bank or financial institution (60%).
• The monthly “special withdrawal” waivers — which previously allowed individuals to withdraw ₦5 million and corporates ₦10 million once a month — have been abolished.

Why the Changes — And What They Aim to Achieve

The CBN explained that the earlier cash-policies were introduced in response to economic conditions at the time. But with the passage of time, evolving realities — including the cost of cash mobilization, security threats linked to cash movement, and money-laundering vulnerabilities — made a fresh review necessary.

By removing the deposit cap, the bank is encouraging more deposits, which can help improve liquidity in the banking system. Meanwhile, raising withdrawal limits aims to give consumers and businesses more flexibility while still establishing boundaries to prevent abuse.

The shared excess-withdrawal fees serve as a deterrent against frequent or large cash withdrawals — nudging users toward digital payments, which are more traceable and less prone to misuse.