The Central Bank of Nigeria (CBN) has announced a major overhaul of the nation's cash management rules, introducing revised withdrawal limits and new processing fees set to commence in the new year. The policy shift, detailed in a circular dated December 4, 2025, is designed to modernize the financial system and curb risks associated with high-volume cash transactions.
Key Changes to Withdrawal Limits and Fees
Effective from January 1, 2026, the new framework sets a weekly cash withdrawal limit of N500,000 for individuals across all channels, including bank counters, Automated Teller Machines (ATMs), and Point of Sale (PoS) terminals. For corporate organizations, the weekly ceiling is significantly higher at N5 million.
Notably, the CBN has scrapped the previous cumulative deposit limits and associated excess deposit fees. However, withdrawals that exceed the new weekly caps will now attract penalties. Individuals will pay a 3% fee on amounts above their limit, while corporations will be charged 5%. The apex bank has stated that these fees will be shared between the CBN and the financial institutions in a 40:60 ratio.
For daily ATM access, customers can withdraw up to N100,000, which counts toward the cumulative weekly limit. The special monthly withdrawal provision that previously allowed individuals and corporates to access N5 million and N10 million, respectively, with approval has been discontinued.
Operational Adjustments and Reporting Requirements
The circular, signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, mandates several operational changes for banks. Financial institutions are now permitted to load ATMs with all denominations of the Naira, offering greater flexibility in cash dispensing.
However, strict reporting protocols have been instituted. Banks are required to submit monthly returns on all cash withdrawal transactions that exceed the stipulated limits, as well as on cash deposits, using a format to be provided by the CBN's supervisory departments. Furthermore, deposit money banks must maintain separate internal ledgers specifically to track the processing charges collected from excess withdrawals.
The rule limiting over-the-counter encashment of third-party cheques to N100,000 remains, with such withdrawals also contributing to the weekly limit.
Exemptions and Broader Policy Goals
The revised framework includes specific exemptions. Accounts belonging to federal, state, and local governments that are used for revenue generation are not subject to the new limits. Similarly, accounts held by Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) with commercial and non-interest banks are also exempt.
In a significant shift, embassies, diplomatic missions, and aid-donor agencies will no longer enjoy exemptions from cash restrictions under this new regime.
The CBN frames these sweeping changes as a necessary step to streamline years of cash-related directives and align policy with current economic realities. The overarching objectives are to reduce the high costs of cash handling, strengthen security during cash movements, mitigate money laundering risks, and ultimately encourage the use of electronic payments for a safer and more efficient financial ecosystem.
