CBN Revamps Cash Policy: Weekly Withdrawal Limits Set, Deposit Caps Removed

The Central Bank of Nigeria (CBN) has unveiled a major cash policy update that will affect how Nigerians access and manage their money. Starting January 1, 2026, individuals will be allowed to withdraw a maximum of ₦500,000 weekly, while corporate accounts will be capped at ₦5,000,000. The updated policy also abolishes previous deposit limits, making it easier for businesses and individuals to deposit large sums without restriction.

According to BusinesDay, this policy shift aims to reduce security risks, curb money laundering, and promote a gradual transition towards a cashless economy. The CBN also emphasized that the new limits are intended to streamline cash management for both banks and consumers while encouraging the adoption of digital payment channels.

Daily ATM withdrawals for individuals are capped at ₦100,000, which contributes to the overall weekly withdrawal limit. Exceeding these limits will attract fees, with individuals charged 3% and corporate accounts 5% for excess withdrawals. These fees are designed to deter large cash transactions and encourage Nigerians to rely more on electronic payment methods such as mobile banking, POS, and online transfers.

Previously, Nigerians faced several restrictions that often complicated access to cash, including monthly authorisation windows and deposit caps that affected SMEs and traders operating in cash-intensive sectors. With the abolition of deposit limits, businesses and individuals can now operate more freely, making it easier to manage large transactions, salaries, and daily operations.

According to Reuters, the CBN’s decision is also aligned with global best practices, where central banks encourage cashless transactions to increase transparency, reduce the cost of cash handling, and enhance overall financial security. The policy is expected to improve banking efficiency and reduce the risks associated with handling large amounts of cash physically.

For everyday Nigerians, this policy change requires careful planning. Individuals will need to budget their weekly cash needs to avoid excess withdrawal fees, while businesses may need to adjust how they manage payrolls and large transactions. The policy also signals an opportunity for fintech companies and banks to offer innovative solutions that facilitate cashless payments and ensure smoother operations.

The push towards digital payments is expected to accelerate, with more Nigerians likely to embrace mobile banking apps, POS systems, and online banking services. This aligns with Nigeria’s broader financial inclusion goals, allowing more people to access banking services while minimizing risks associated with physical cash.

Experts suggest that the new policy could have long-term benefits for Nigeria’s economy. By limiting physical cash in circulation, banks can improve liquidity management, reduce the cost of cash handling, and create safer banking environments. Meanwhile, consumers benefit from easier access to digital tools and the ability to manage funds efficiently.

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In summary, the CBN’s new cash policy marks a significant step towards modernizing Nigeria’s financial system. While the withdrawal limits may require adjustments for individuals and businesses, the removal of deposit caps and promotion of digital payments offers greater flexibility and security. Nigerians are advised to plan their finances carefully and consider integrating digital payment methods into their daily transactions.