CBN Removes Limit on Cash Deposits, Raises Weekly Withdrawal Limit to ₦500,000

In a major development aimed at easing financial transactions and improving liquidity across the Nigerian economy, the Central Bank of Nigeria (CBN) today announced the complete removal of limits on cash deposits nationwide. Alongside this significant policy shift, the apex bank has also reviewed upward the weekly cash withdrawal limit across all channels—from the previous ₦100,000 to a new threshold of ₦500,000 for individuals.

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This directive, which takes immediate effect, marks one of the most sweeping adjustments to Nigeria’s cash management framework in recent years. It comes at a time when businesses, traders, rural communities, and financial institutions have been calling for more flexibility in cash access following months of tight withdrawal restrictions introduced as part of the earlier currency redesign and cashless policy drive.

According to the circular released by the CBN today, the removal of deposit limits applies across commercial banks, microfinance banks, mobile money operators, and other financial service providers. This means customers can now deposit any amount of cash without facing regulatory ceilings or reporting obstacles — though standard anti-money laundering checks will remain in place. The Bank emphasized that the decision is expected to “promote easier access to funds, reduce transaction bottlenecks, and support economic activities across all sectors.”

The increase in the weekly withdrawal limit to ₦500,000 marks another fundamental shift that many Nigerians have long anticipated. Over the past year, traders, market associations, transport operators, and small business owners had repeatedly expressed frustration over the previous ₦100,000 weekly limit, arguing that it was too restrictive for both personal and business needs, especially in regions where digital payment infrastructure is weak.

By raising the limit to ₦500,000, the CBN hopes to provide citizens with more freedom in managing their cash while still maintaining the broader goals of encouraging digital transactions and strengthening the formal financial system.

Financial analysts say today’s policy may have several immediate effects. First, it is expected to reduce pressure on automated teller machines (ATMs) and point-of-sale (POS) operators, who have struggled over the last few months due to high demand for limited available cash. With banks now authorized to release more physical cash, the frequent queues and shortages seen at ATMs across the country may significantly reduce.

Second, rural communities — where cash transactions remain dominant — stand to benefit greatly. Many farming, trading, and cooperative activities rely heavily on cash, and the previous withdrawal limit had slowed down business cycles in these areas. The new ₦500,000 ceiling is expected to improve trade flows, boost agricultural markets, and empower local economies.

Third, the removal of cash deposit limits is being interpreted as a boost for small-scale businesses that deal with high daily turnover. Market women, artisans, transporters, petrol station operators, and local merchants who often accumulate substantial cash will now be able to deposit their earnings without restrictions. This is expected to encourage more people to bank their money, increase financial inclusion, and reduce the risks associated with holding large amounts of cash.

The policy shift may also stabilize the POS business ecosystem. POS operators, who have been under intense pressure due to cash scarcity and withdrawal caps, will now have improved access to liquidity. This could lead to lower charges, better service, and increased competition, especially in urban centers where POS transactions have become an essential part of daily life.

The CBN’s announcement is also seen as part of broader efforts to rebuild public confidence in the banking sector after the turbulence caused by the naira redesign policy, which led to prolonged shortages and disruptions in early 2024. At the time, many Nigerians questioned the readiness of the country’s financial infrastructure to support an aggressive shift towards a cashless economy.

By relaxing these controls, the apex bank appears to be responding to widespread concerns while still maintaining oversight mechanisms necessary to combat money laundering, fraud, and financial crimes. The Bank reiterated today that transactions exceeding certain thresholds will still trigger routine reporting requirements, but customers will no longer face arbitrary limits on how much they can deposit.

Economists believe the updated cash policies may inject much-needed liquidity into the economy, especially as the year-end festive season approaches — a period typically marked by increased spending, travel, and business activities. With greater access to cash, households and businesses may experience smoother transactions, which could strengthen consumer confidence and stimulate economic growth.

However, some analysts warn that the increased cash circulation could put moderate pressure on inflation if not carefully managed. Nigeria is already grappling with rising food prices, high transportation costs, and foreign exchange volatility. They advise that the CBN should complement this policy with strong monetary tools to ensure that the move does not fuel unnecessary price hikes.

Reactions have begun to pour in from various sectors. Market associations, business groups, POS operators, and civil society organizations have welcomed the policy as timely and necessary. Many Nigerians on social media also expressed relief, describing the development as “long overdue” and “a return to common sense cash management.”

As the new guidelines take effect, banks are expected to update their withdrawal systems, adjust their internal cash allocation processes, and issue directives to branches nationwide to ensure smooth implementation.

With this bold step, the CBN is signaling a renewed commitment to balancing cash accessibility with modern financial reforms — ultimately aiming for an economy where digital innovation and traditional cash transactions coexist effectively for the benefit of all citizens.