Major financial institutions across Nigeria have begun notifying their customers of significant revisions to cash handling policies, mandated by the Central Bank of Nigeria (CBN). The changes, which took effect on January 1, 2026, introduce new weekly limits on cash withdrawals and associated processing fees for transactions exceeding those caps.
Key Details of the New Cash Policy
The updates, communicated by banks including Access Bank, United Bank for Africa (UBA), Guaranty Trust Bank (GTB), Ecobank, and Wema Bank, are part of a broader CBN directive aimed at improving cash management and security. A core objective is to encourage the public to adopt digital payment channels for higher-value transactions, promoting a safer and more convenient financial ecosystem.
Under the new framework, weekly cash withdrawal limits have been standardized. For individual account holders, the maximum allowable withdrawal across all channels—including over-the-counter and ATM—is now N500,000. Corporate entities face a much higher ceiling of N5,000,000 per week.
Perhaps the most critical change for customers is the introduction of processing fees for withdrawals that surpass these weekly limits. Financial institutions will now levy a charge of 3% on the excess amount for individuals and a steeper 5% for corporate withdrawals.
ATM Limits and Digital Banking Push
The policy also reaffirms existing daily ATM withdrawal caps. Customers can withdraw a maximum of N100,000 per day from ATMs, with a cumulative weekly maximum of N500,000 from these machines. It is important to note that all cash withdrawals—whether via ATM, point-of-sale (POS) terminals, or across the bank counter—are aggregated toward the individual's or company's weekly limit.
In their messages to customers, banks have strongly emphasized the use of alternative channels. Customers are being urged to utilize internet banking, mobile apps, USSD codes, and electronic transfers for transactions, especially those of significant value. This shift is positioned as a move toward greater transparency, enhanced regulatory compliance, and the nationwide adoption of electronic payments.
Bank-Specific Communications and CBN's Broader Agenda
Ecobank Nigeria, in its notification, clearly outlined the new structure, confirming that cash deposits would not attract extra fees, but withdrawals above the stated limits would incur charges. Similarly, Wema Bank detailed that the policy removes previous cumulative cash deposit limits and fees, while reinforcing the withdrawal caps.
The banking sector's move aligns with a broader CBN agenda for 2026, which includes stricter enforcement of consumer protection standards. Prior to this directive, the CBN had ordered banks and other financial institutions to withdraw any advertisement or promotional material found to violate fair marketing and transparency rules as outlined in existing regulations.
This latest policy update signifies a continued push by Nigeria's monetary authority to formalize the economy, reduce the volume of physical cash in circulation, and bolster the security and efficiency of the country's payment systems.
