The Central Bank of Nigeria (CBN) has revised its cash withdrawal policy, ending the special authorisation that previously allowed individuals to withdraw up to ₦5 million and corporate entities ₦10 million once a month. The new rules will take effect on January 1, 2026.
In a circular dated Tuesday, December 2, 2025, and signed by Dr. Rita I. Sike, Director of the Financial Policy and Regulation Department, the apex bank said the adjustment reflects the need to align cash-related policies with current economic realities.
The CBN explained that previous cash policies were introduced at different times “in response to evolving circumstances in cash management.” However, it noted that the latest framework aims to reduce the cost of cash handling, improve security, and minimise money laundering risks tied to Nigeria’s high dependence on physical currency.
“These policies, issued 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,” the CBN stated.
New Withdrawal and Deposit Rules
Under the revised framework:
- Individuals can withdraw up to ₦500,000 weekly across all channels.
- Corporate entities are limited to ₦5 million weekly.
- Withdrawals above these thresholds will attract excess withdrawal fees of 3% for individuals and 5% for corporates, to be shared between the CBN and the respective financial institutions.
- ATM withdrawals are capped at ₦100,000 per day and ₦500,000 weekly, forming part of the cumulative weekly limit.
- The special authorisation that allowed higher monthly withdrawals has been discontinued.
The circular further stated that all currency denominations may now be loaded into ATMs. However, over-the-counter third-party cheque encashments remain limited to ₦100,000, and such withdrawals will also count toward the weekly limits.
Compliance and Reporting Obligations
Deposit Money Banks (DMBs) are mandated to:
- Submit monthly reports detailing all cash withdrawals and deposits above the stipulated limits.
- Maintain separate accounts to hold processing charges collected from excess withdrawals.
Exemptions and Superseding Provisions
The CBN clarified that certain accounts—such as those operated by the federal, state, and local governments, as well as microfinance banks and primary mortgage institutions—are exempted from the new withdrawal limits and associated fees.
However, previous exemptions granted to embassies, diplomatic missions, and international aid agencies have been revoked.
The circular also notes that the latest directive “is without prejudice to provisions of earlier guidelines but supersedes others” as outlined in its appendices.
Background
The announcement follows a series of measures introduced by the apex bank to strengthen financial oversight.
In October 2025, the CBN directed all financial institutions to submit detailed monthly reports on the activities of their Point-of-Sale (POS) agents.
That circular—signed by Musa Jimoh, Director of the Payments System Policy Department—required banks to report the nature, value, and volume of POS transactions. It also set transaction limits of ₦1.2 million per day for agents and ₦100,000 per day for individual customers.
According to the CBN, these restrictions are intended to curb misuse, promote transparency, and enhance consumer protection within the agent banking framework.
