By David Akinmola
The Central Bank of Nigeria (CBN) has announced a comprehensive overhaul of the country’s cash withdrawal and management framework, introducing new limits and charges aimed at reducing the high cost of cash handling, curbing security risks in physical cash movement, and tightening controls against money laundering.
The revised rules contained in a circular signed by the Director, Financial Policy and Regulation Department, Dr. Rita Sike will take effect on January 1, 2026, and apply to all deposit-taking financial institutions nationwide.
The CBN said the review became necessary to harmonise years of fragmented cash-related directives and align regulatory policy with prevailing economic and payment-system realities.
Under the new regime, the cumulative deposit limit previously in place has been abolished, and fees on excess deposits scrapped.
However, fresh caps have been introduced on withdrawals across all channels.
Individuals may now withdraw up to N500,000 weekly, while corporates are limited to N5 million. These thresholds apply to withdrawals made through bank counters, ATMs and PoS terminals. Withdrawals exceeding these limits will attract processing fees.
Daily ATM withdrawals have been capped at N100,000 per customer, with the amount counting toward the weekly limit. The previous provision allowing individuals and corporates to secure one-off special approvals to withdraw N5 million and N10 million monthly has also been discontinued.
For withdrawals above the stipulated caps, individuals will pay a three per cent fee, while corporates will be charged five per cent. The circular indicated that proceeds from these charges will be shared between the CBN and financial institutions in a 4:6 ratio.
Banks have also been granted greater flexibility to load ATMs with all denominations, while over-the-counter encashment of third-party cheques remains capped at N100,000 a figure that forms part of the weekly ceiling.
In addition, deposit money banks must maintain separate internal ledgers to track all processing charges tied to excess withdrawals.
They are required to file monthly returns on all transactions exceeding the limits, as well as on cash deposits, using formats that will be prescribed by relevant CBN supervisory departments.
The CBN also clarified categories exempted from the rules. Government revenue accounts at federal, state and local levels, as well as the accounts of microfinance banks and primary mortgage banks held with commercial and non-interest banks, retain exemption status.
However, embassies, diplomatic missions and donor agencies previously exempt under older regulations will now be subject to the revised limits without concession.
The apex bank said the policy update is part of a broader strategy to reduce systemic risk, promote electronic payment adoption and enhance the safety and efficiency of the nation’s financial system.
