The Central Bank of Nigeria (CBN) has announced a significant overhaul of its cash withdrawal policy, setting new limits that will take effect from the start of 2026. This move marks the end of special monthly withdrawal authorizations that were previously in place.
New Withdrawal Limits and Fees
In a circular issued by the Financial Policy & Regulation Department and signed by its Director, Dr. Rita I. Sike, the apex bank outlined the new structure. Effective January 1, 2026, individuals will be permitted to withdraw a maximum of ₦500,000 per week across all banking channels. For corporate entities, the weekly ceiling is set at ₦5 million.
Any withdrawals exceeding these stipulated thresholds will incur processing fees. Individuals will pay an excess charge of three percent, while corporate withdrawals above the limit will attract a five percent fee. The CBN clarified that these charges will be shared between the bank itself and the financial institutions involved in the transaction.
Specifics on ATM and Cheque Withdrawals
The new policy also introduces clear caps on Automated Teller Machine (ATM) transactions. Daily withdrawals from ATMs are now limited to ₦100,000 per customer, with a cumulative weekly maximum of ₦500,000. The CBN confirmed that all currency denominations can now be loaded into ATMs to facilitate this.
Furthermore, the bank stated that the encashment limit for third-party cheques over the counter remains at ₦100,000. Crucially, all cash withdrawals, whether via ATM, over-the-counter, or cheque encashment, will count towards the individual's or company's total weekly withdrawal limit.
Rationale and Reporting Requirements
The CBN explained that the policy revision is designed to address contemporary economic realities. The goal is to reduce the high cost of cash management within the financial system, strengthen security, and mitigate money laundering risks associated with excessive use of physical currency.
To ensure compliance, the Central Bank has mandated all Deposit Money Banks to submit monthly reports detailing cash withdrawals and deposits that exceed the specified limits. These reports must be sent to the relevant supervisory departments within the CBN for monitoring and oversight.
This policy shift signifies the bank's continued push to streamline past regulations and encourage the adoption of electronic payment channels, moving the economy further towards a cash-lite system.
