CBN’s new policy limits weekly cash withdrawals for individuals and corporations, introduces excess withdrawal fees, and strengthens banking oversight.
Central Bank of Nigeria (CBN) has announced revised cash withdrawal rules, effective January 1, 2026, ending previous special authorizations that allowed individuals to withdraw ₦5 million and corporates ₦10 million once a month. The reforms aim to streamline cash management, strengthen security, and mitigate money laundering risks.
In a circular released on December 2, 2025, the CBN explained that past withdrawal policies were introduced in response to evolving circumstances in Nigeria’s cash economy. However, the apex bank said modern realities and the increasing adoption of electronic payment systems have necessitated a review. “The need has arisen to streamline the provisions of these policies to reflect present-day realities,” the circular stated.
Under the new rules, individuals may withdraw up to ₦500,000 weekly across all banking channels, while corporate entities are limited to ₦5 million. Withdrawals exceeding these thresholds will incur excess withdrawal fees of three percent for individuals and five percent for corporates, with charges shared between the CBN and the respective financial institutions.
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Daily Automated Teller Machine (ATM) withdrawals will be capped at ₦100,000 per customer, with a maximum of ₦500,000 per week, contributing to the weekly withdrawal limit. The CBN also confirmed that all currency denominations may now be loaded into ATMs. Over-the-counter encashment of third-party check remains capped at ₦100,000, with such transactions counted toward the weekly withdrawal threshold.
Deposit Money Banks are required to submit monthly reports on cash withdrawals above the prescribed limits, as well as on cash deposits, to relevant supervisory departments. Banks must also maintain separate accounts for processing fees collected from excess withdrawals.
Certain accounts are exempt from the new rules, including revenue-generating accounts of federal, state, and local governments, as well as accounts of microfinance and primary mortgage banks. However, prior exemptions for embassies, diplomatic missions, and aid-donor agencies have been removed.
The CBN noted that while the circular complements certain previous directives, it supersedes others as detailed in its appendices. Officials emphasized that the reforms are part of broader efforts to encourage electronic payment adoption, reduce reliance on cash, and improve transparency in Nigeria’s financial system.
Analysts say the move could significantly impact liquidity management for businesses and individuals, while also advancing the central bank’s agenda to modernize the country’s financial infrastructure and limit informal cash circulation.