The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, with the new limits set to take effect in January 2026.
The newly revised rules end a previous special authorisation that had permitted individuals to withdraw ₦5 million and corporate entities to withdraw ₦10 million once per month.
In a circular released on Tuesday, December 2, 2025, and signed by the Director of the Financial Policy & Regulation Department, Dr. Rita I. Sike, the CBN explained that the policy is designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.
The apex bank stated that previous cash policies had been introduced over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.
With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities.
Key Changes Effective January 1, 2026:
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New Weekly Limits: Individuals will be allowed to withdraw up to ₦500,000 weekly across all channels, while corporate entities will be limited to ₦5 million weekly.
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Excess Withdrawal Fees: Withdrawals above these thresholds will attract excess withdrawal fees of three percent for individuals and five percent for corporates. These charges will be shared between the CBN and the financial institutions.
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ATM Limits: Daily withdrawals from Automated Teller Machines (ATMs) will be capped at ₦100,000 per customer, with a maximum of ₦500,000 per week. These transactions will count toward the cumulative weekly withdrawal limit.
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Encashment Limit: The over-the-counter encashment limit for third-party cheques remains at ₦100,000, and such withdrawals will also form part of the weekly limit.
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ATM Denominations: The CBN also confirmed that all currency denominations may now be loaded in ATMs.
Deposit Money Banks (DMBs) are required to submit monthly reports on cash withdrawals and deposits above the specified limits. They must also create separate accounts to warehouse processing charges collected on excess withdrawals.
Exemptions
Accounts of microfinance banks, primary mortgage banks, and revenue-generating accounts of federal, state, and local governments are exempt from the new withdrawal limits and excess withdrawal fees. However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.
The CBN clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.
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