CBN Raises Withdrawal Limit to ₦500,000

The Central Bank of Nigeria (CBN) on Wednesday announced sweeping changes to its cash policy, removing all limits on cash deposits and increasing the weekly cash withdrawal ceiling from ₦100,000 to ₦500,000 across all channels.

The decision marks one of the most significant adjustments to the apex bank’s cashless policy since its introduction, signaling a shift toward easing liquidity pressures and addressing public complaints over restricted cash access.

In a circular issued to commercial banks, microfinance banks, mobile money operators, and other financial institutions, the CBN said the new policy takes immediate effect. The bank explained that the review followed “extensive stakeholder engagement” and an assessment of the current cash needs of households and businesses.

The move comes amid rising concerns from traders, small businesses, and rural communities that the strict cash withdrawal limit introduced earlier in the year had disrupted commercial activities and slowed down informal sector transactions. Banks had struggled with customer dissatisfaction, long queues, and repeated requests for exemptions as cash-dependent Nigerians found it difficult to operate under the previous cap.

Financial analysts say the policy reversal indicates a more flexible approach by the CBN towards managing cash circulation, especially as economic conditions tighten and market confidence fluctuates. By removing deposit limits, the apex bank appears to be encouraging greater flow of cash into the financial system while also easing customer access to funds.

A senior bank executive who spoke on background described the decision as “a relief for both customers and financial institutions,” noting that many banks had been overwhelmed with requests for higher withdrawal thresholds for weddings, burials, market transactions, and emergency needs. “This revision will reduce friction and rebuild trust,” the official said.

However, some economists warn that the expanded withdrawal limit could place added pressure on currency circulation and complicate ongoing efforts to curb cash hoarding and unregistered cash transactions. They also caution that without adequate monitoring, the policy may encourage increased cash-based activities outside the formal banking structure.

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Despite these concerns, the CBN assured Nigerians that the banking sector remains stable and capable of meeting the new cash demands. The apex bank urged financial institutions to “ensure seamless implementation” while continuing to promote electronic payments and digital banking.

The announcement has sparked mixed reactions across the country, but many Nigerians welcomed the immediate relief it brings, especially ahead of the festive season when cash transactions typically surge.