Breaking: Central Bank Of Nigeria Revises Cash Withdrawal Regulations

The Central Bank of Nigeria (CBN) announced on Tuesday that it will revise its cash withdrawal rules starting January 2026, ending the previous special authorisation that allowed individuals to withdraw ₦5 million and corporate entities ₦10 million monthly.....KINDLY READ THE FULL STORY HERE▶

According to the CBN, these earlier cash policies were introduced over time to address evolving circumstances, but there is now a need to streamline them to reflect present-day realities.

Dr. Rita I. Sike, Director of the Financial Policy & Regulation Department, stated in a circular released on December 2, 2025, that the revised policy aims to reduce cash management costs, enhance security, and mitigate money laundering risks linked to Nigeria’s heavy reliance on physical currency.

The CBN explained:
“These policies, introduced over the years to manage cash usage and encourage electronic payments, now require updating to align with current realities.”

Key Provisions of the New Rules:

• Individuals: Withdrawals capped at ₦500,000 per week across all channels.

• Corporate Entities: Withdrawals limited to ₦5 million per week.

• Excess Withdrawal Fees: Withdrawals above limits attract 3% for individuals and 5% for corporates, with fees shared between the CBN and financial institutions.

• ATM Withdrawals: Daily ATM withdrawal limit set at ₦100,000 per customer, with a maximum of ₦500,000 per week, counting toward the weekly cumulative limit.

• ATMs & Cheques: All currency denominations can now be loaded in ATMs; over-the-counter encashment of third-party cheques remains capped at ₦100,000, also counting toward weekly limits.

• Reporting Requirements: Deposit Money Banks must submit monthly reports on withdrawals and deposits above limits and maintain separate accounts for excess withdrawal processing charges.

Exemptions and Changes:

• Federal, state, and local government accounts, as well as microfinance and primary mortgage bank accounts, are exempt from the new limits and fees.

• Previous exemptions for embassies, diplomatic missions, and aid-donor agencies have been withdrawn.

• The circular clarifies that it supersedes certain earlier directives while remaining without prejudice to specific provisions outlined in past CBN regulations.