The Central Bank of Nigeria has announced a fresh set of cash withdrawal regulations that will take effect on January 1, 2026, marking a major shift in the country’s cash management strategy.
The revised framework aims to cut the rising cost of cash handling, strengthen security around cash movements and curb financial crimes linked to heavy use of physical money.
In a circular signed by the Director of Financial Policy and Regulation, Dr Rita Sike, the CBN explained that the update was necessary to harmonise several cash directives issued over the years and bring policy in line with today’s financial realities. One of the most significant changes is the removal of the cumulative cash deposit limit, along with the scrapping of related deposit fees.
Under the new guidelines, individuals can withdraw up to five hundred thousand naira weekly, while corporate bodies are limited to five million naira across bank counters, ATMs and PoS terminals. Daily ATM withdrawals are capped at one hundred thousand naira, and all ATM and PoS transactions now contribute to the weekly total. Withdrawals above the approved limits will attract charges of three per cent for individuals and five per cent for corporate organisations, shared between the CBN and the banks.
The News Chronicle gathered that banks will be required to submit monthly reports on cash withdrawals that exceed the set limits and maintain internal ledgers dedicated to tracking excess withdrawal charges.
The directive also allows banks to load ATMs with all denominations for improved dispensing flexibility. However, over-the-counter third-party cheque withdrawals remain capped at one hundred thousand naira and form part of the weekly limit. While certain government revenue accounts, microfinance banks and primary mortgage banks remain exempt, embassies and donor agencies will no longer enjoy previous waivers.
The CBN noted that the framework supports its broader push toward safer electronic payments and a more efficient financial system as Nigeria transitions away from heavy reliance on cash.
