Nigeria’s Central Bank Introduces Stricter Limits on Cash Withdrawals

Nigeria’s Central Bank Introduces Stricter Limits on Cash Withdrawals.

The Central Bank of Nigeria (CBN) has issued a new policy that will change how much cash individuals and businesses can take out from their accounts. Starting January 1, 2026, stricter weekly withdrawal limits will replace the more flexible monthly allowances that were previously in place.

This change means the end of a special provision that allowed individuals to withdraw up to ₦5 million, and companies up to ₦10 million, once per month with approval.

In a circular signed by Rita Sike, Director of the Financial Policy and Regulation Department, the CBN explained that the new rules are designed to better fit the current needs of the economy. The bank stated the goal is to create clearer guidelines, ease the burden of handling large amounts of physical cash, improve security, and lower the risks that come with moving significant cash sums.

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Under the new system, the maximum an individual can withdraw across all channels—including over the counter and via ATM—is ₦500,000 per week. For corporate organisations, the weekly limit is set at ₦5 million.

Those who need to withdraw more than these amounts will face an additional charge. Individuals will pay a processing fee of 3%, while companies will pay 5% for amounts above the limit. These fees will be shared between the CBN and the customer’s commercial bank.

Specific rules for ATM withdrawals have also been set. Daily cash withdrawals from an ATM are now limited to ₦100,000, with a weekly cap of ₦500,000. Any money taken from an ATM will count toward the individual’s total weekly withdrawal allowance. The CBN also directed that ATMs should be configured to dispense all denominations of naira notes.

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The policy also affects cheque transactions. Third-party cheques worth more than ₦100,000 will no longer be cashed over the counter. Furthermore, any cash received from a cheque within the allowed limit will be included in the weekly withdrawal total.

To ensure compliance, commercial banks are required to submit monthly reports on all withdrawals and deposits that exceed the new limits. They must also keep separate records for the processing fees collected from customers who exceed their withdrawal allowance.

The new rules provide some exceptions. Accounts belonging to federal, state, and local governments for revenue collection are not subject to the limits. Microfinance banks and primary mortgage banks are also exempt from both the caps and the associated charges.

However, special permissions previously granted to embassies, diplomatic missions, and multilateral aid agencies have been revoked under this new circular.

The CBN noted that this update replaces specific sections of older directives but leaves other existing cash handling regulations in effect.