By Shiloh Nwambueze
Business News Correspondent
The Central Bank of Nigeria (CBN) has announced a sweeping overhaul of the nation’s cash withdrawal and cash-handling regulations, introducing a new operational framework that will take effect on January 1, 2026. The revised system is designed to curb excessive reliance on physical cash, reduce the cost of cash management, minimise security risks associated with bulk cash movement, and tighten controls against money laundering.
The policy update was issued in a circular signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, who noted that the new measures are part of the CBN’s long-term strategy to harmonise existing cash policies and align them with emerging economic realities.
Key Changes to Cash Withdrawal Limits
Under the new regime, individuals will now be allowed to withdraw up to ₦500,000 per week, while corporate organisations may withdraw up to ₦5 million weekly across all available channels — including bank counters, ATMs, and PoS terminals.
Withdrawals exceeding these limits will attract excess withdrawal fees, signalling the CBN’s renewed commitment to promoting cash-lite transactions.
The policy also eliminates previous monthly special-approval withdrawals of ₦5 million for individuals and ₦10 million for corporates.
Daily ATM withdrawals have been capped at ₦100,000, and these withdrawals will form part of the cumulative weekly limit of ₦500,000.
Abolishment of Deposit Limits
One of the notable changes in the circular is the complete removal of the old cumulative deposit limits, along with the charges previously imposed on excess cash deposits. According to the CBN, scrapping these restrictions simplifies the process for customers and aligns with current market needs.
New Fees for Exceeding Limits
The circular further revealed that:
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Individuals exceeding the weekly withdrawal limit will pay a 3% fee
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Corporates exceeding the limit will pay a 5% fee
The charges will be shared between deposit money banks and the CBN in a 60:40 ratio, with banks receiving the larger portion.
Operational Requirements for Banks
To ensure transparency and compliance:
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Banks must submit monthly reports detailing all withdrawals that go beyond the stipulated limits.
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Financial institutions are expected to keep dedicated internal ledgers for all excess-withdrawal processing fees.
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ATMs may now be loaded with all denominations, increasing flexibility for customers.
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Over-the-counter withdrawals using third-party cheques remain limited to ₦100,000, and they will count toward the weekly cap.
Who Is Exempt?
Only a limited number of accounts will not be subjected to the withdrawal thresholds, including:
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Revenue accounts of federal, state, and local governments
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Accounts belonging to microfinance banks (MFBs)
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Accounts held by primary mortgage banks (PMBs)
In a major policy shift, embassies, diplomatic missions, and international aid agencies will no longer enjoy exemptions under the new cash-handling regime.
Driving a Cash-Lite Future
According to the CBN, this policy rewrite forms part of a holistic effort to reduce systemic financial risks, deepen electronic payment adoption, and build a safer and more efficient financial ecosystem.
With these changes taking effect at the start of 2026, the apex bank says banks and customers must prepare for a tighter, more transparent, and technology-forward approach to cash management in Nigeria.
