The Central Bank of Nigeria (CBN) has announced sweeping changes to its cash withdrawal regulations, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly.
The new rules, which take effect from January 1, 2026, are part of an extensive overhaul aimed at reducing cash dependency, cutting cash management costs, and strengthening financial system security.
The revised policy was disclosed in a circular issued on Tuesday, December 2, 2025, and signed by the Director of the Financial Policy & Regulation Department, Dr. Rita I. Sike. According to the CBN, the updated framework is intended to address the risks associated with the country’s heavy reliance on physical cash, including money laundering concerns, inefficiencies in cash distribution, and security vulnerabilities. It also reinforces the Federal Government’s push toward greater adoption of electronic payment channels.
“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options,” the circular noted. “With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities.”
Key Provisions of the New Cash Withdrawal Rules
1. Weekly withdrawal limits
- Individuals: N500,000 across all channels
- Corporate entities: N5 million
Withdrawals above these thresholds will attract 3% fees for individuals and 5% for corporates, to be shared between the CBN and the processing financial institution.
2. ATM withdrawal limits
- Maximum of N100,000 per day
- Cumulative weekly withdrawals cannot exceed N500,000
All ATM cash-outs will count toward the overall weekly withdrawal limits.
3. Discontinued special authorisation
- The one-off monthly withdrawal allowance of N5m for individuals and N10m for companies has been abolished.
4. Cheques and ATM loading
- All denominations may now be loaded in ATMs.
- Third-party cheque encashment over the counter remains limited to N100,000, and counts toward the weekly withdrawal cap.
Compliance Requirements for Banks
Deposit Money Banks must:
- Submit monthly reports of withdrawals above allowed limits, as well as cash deposits, to relevant CBN supervisory departments.
- Maintain separate accounts to warehouse excess withdrawal processing charges.
Exemptions and Withdrawn Waivers
Exemptions apply to cash withdrawals from:
- Accounts of federal, state, and local governments
- Microfinance banks and primary mortgage banks operating accounts with commercial and non-interest banks
However, previously granted exemption waivers to embassies, diplomatic missions, and donor-aid agencies have been revoked.
The CBN added that the circular supersedes several earlier directives while coexisting with others, as listed in its appendices.
