The Central Bank of Nigeria has announced sweeping changes to cash withdrawal rules that will tighten limits on how much individuals and businesses can take out of banks weekly, while scrapping the special permissions that previously allowed multi-million-naira cash withdrawals each month. The new policy takes effect from January 1, 2026.

In a circular dated December 2, 2025 and signed by the Director of the Financial Policy and Regulation Department, Dr Rita I. Sike, the apex bank said the review was necessary to bring its cash management framework in line with current conditions. According to the CBN, earlier policies were rolled out at different times to address evolving challenges around cash usage, but those provisions now require consolidation to reflect present-day realities.

Under the new rules, individuals will be allowed to withdraw a maximum of ₦500,000 per week across all channels, while corporate entities will have a weekly ceiling of ₦5 million. Any amount withdrawn above these limits will attract penalties of three percent for individuals and five percent for corporate customers, with the charges split between the CBN and the respective financial institutions.

ATM usage has also been capped more tightly. Customers will be limited to ₦100,000 per day from automated teller machines, with a total maximum withdrawal of ₦500,000 per week. These ATM transactions will count toward each customer’s overall weekly withdrawal allowance.

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The central bank has ended the long-standing special authorisation regime that allowed individuals to withdraw up to ₦5 million and corporate organisations up to ₦10 million in cash once a month. Going forward, that concession will no longer apply.

The CBN also confirmed that all currency denominations are now permitted to be loaded into ATMs, a move intended to improve cash availability through electronic channels. Over-the-counter encashment of third-party cheques remains limited to ₦100,000, and these transactions will also form part of the weekly withdrawal threshold.

To strengthen regulatory oversight, Deposit Money Banks have been directed to submit monthly reports to relevant supervisory departments detailing cash withdrawals exceeding the approved limits as well as general cash deposit activities. Banks are equally required to maintain dedicated accounts for processing fees collected from customers who exceed their withdrawal allowances.

Certain institutions remain exempt from both the new limits and the excess withdrawal charges. These include revenue-generating accounts of federal, state, and local government bodies, as well as microfinance banks and primary mortgage banks operating under commercial and non-interest banking frameworks. However, exemptions previously granted to embassies, diplomatic missions, and donor agencies have been withdrawn.

The CBN noted that the latest circular does not override all previous directives but instead supersedes specific provisions, as outlined in its appendices.

The updated withdrawal rules follow the central bank’s earlier intervention in October, which mandated financial institutions to submit comprehensive monthly reports on Point-of-Sale agent transactions. Under those guidelines, POS agents are restricted to handling no more than ₦1.2 million daily in total transactions, while individual customer transactions through POS channels are capped at ₦100,000.

According to the CBN, the renewed focus on withdrawal limits and agent banking controls is designed to reduce the economy’s dependence on physical cash, cut cash management costs, strengthen security, curb money laundering risks, and protect consumers across the financial system.

Meiza Nigeria