CBN reviews cash withdrawal rules, enforces new fees in January

By : Collins Olayinka

Date: 4 December 2025 5:04am WAT

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The Central Bank of Nigeria (CBN)

The Central Bank of Nigeria (CBN)

•Individual weekly withdrawal limit now N500,000, ATM daily limit pegged at N100,000

The Central Bank of Nigeria (CBN) is embarking on sweeping changes to the country’s cash management regulations, unveiling a revised framework to reduce cash-handling costs, strengthen security in cash movements and reduce money-laundering risks associated with heavy dependence on physical currency.

The new rules, issued in a circular signed by the Director, Financial Policy and Regulation Department, Dr Rita Sike, will take effect January 1, 2026, and are mandatory for all deposit-taking financial institutions nationwide.

According to the apex bank, the changes become necessary to streamline years of cash-related directives and align policy with current market realities.

Expected key changes include the abolishment of the cumulative deposit limit previously in place. Fees on excess deposits have also been scrapped.

Individuals may now withdraw up to N500,000 weekly, while corporations are limited to N5 million across all channels, including bank counters, ATMs, and PoS.

Withdrawals above the limits will attract excess withdrawal fees.

The earlier provision allowing individuals and corporates to withdraw N5m and N10m once monthly with special approval has been discontinued.

Customers may withdraw N100,000 daily and up to N500,000 weekly via ATM, the circular said. ATM and PoS withdrawals count towards the weekly cumulative limit.

Also, withdrawals above the stipulated weekly caps incur fees of three per cent for individuals and five per cent for corporates.

The apex bank said the fees will be shared in the ratio of 4:6 for the CBN and financial institutions, respectively.

Banks may now load ATMs with all currency denominations, expanding flexibility in cash dispensing while over-the-counter encashment of third-party cheques remains capped at N100,000. Such withdrawals count toward the weekly withdrawal limits.

Banks are required to render monthly returns on all cash withdrawal transactions above the limits, and cash deposits in a format that would be communicated by supervisory departments.

Also, deposit money banks must maintain separate internal ledgers to track processing charges collected on excess withdrawals.

However, there are exceptions to the rules. Those exempted include revenue-generating accounts of federal, state and local governments and accounts of microfinance banks (MFBs) and primary mortgage banks (PMBs) held with commercial and non-interest banks.

Embassies, diplomatic missions and aid-donor agencies, previously exempt from certain cash restrictions, will no longer enjoy such exemptions under the new regime.

The CBN stated that the revised framework is part of a broader effort to reduce systemic risk, encourage electronic payments and promote a safer, more efficient financial system.

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