CBN issues revised cash policies, raises weekly withdrawal limits effective January 2026

Nike Popoola

The Central Bank of Nigeria (CBN) has released a new set of revised cash-related policies aimed at moderating the rising cost of cash management, tackling security challenges, and reducing the risks of money laundering associated with the nation’s heavy reliance on cash transactions.

The new policies, issued through a circular dated December 2, 2025, and signed by Dr. Rita I. Sike, Director, Financial Policy and Regulation Department, will take effect from January 1, 2026 and are mandatory for all deposit-taking financial institutions across the country.

According to the apex bank, the adjustments became necessary to streamline previous guidelines and reflect “present-day realities,” following years of gradual reform in Nigeria’s cash management framework.

Key policy changes

One of the most significant changes is the removal of the cumulative deposit limit and the associated excess deposit fees, meaning customers will no longer be penalised for depositing large sums of cash.

The CBN also reviewed weekly withdrawal limits upward. Under the new rules:

Individuals may withdraw up to ₦500,000 weekly across all channels.

Corporate bodies may withdraw up to ₦5 million weekly.

Withdrawals above these limits will attract excess withdrawal fees of 3% for individuals and 5% for corporates, shared 40% to the CBN and 60% to banks.

The previous special monthly authorization for withdrawing ₦5 million (individuals) and ₦10 million (corporates) has been scrapped.

ATM, POS, and Cash Handling Adjustments

The circular also states that ATM withdrawals will now be capped at ₦100,000 per customer per day, up to a total weekly maximum of ₦500,000. These transactions form part of the overall weekly withdrawal limits.

Banks are now permitted to load all denominations in ATMs, a shift from previous restrictions.

The ₦100,000 limit on over-the-counter encashment of third-party cheques remains in place and will count toward the customers’ weekly withdrawal totals.

Reporting Requirements and Internal Charges

Deposit Money Banks (DMBs) must render monthly reports to relevant CBN departments on:

Cash withdrawals exceeding the specified limits

Cash deposit activities

They must also maintain dedicated internal ledgers to warehouse charges collected from customers who exceed withdrawal limits.

Exemptions

The CBN stated that the following categories are exempted from Sections 2 and 5 (withdrawal limits and excess withdrawal fees):

Revenue-generating accounts of federal, state, and local governments

Accounts of microfinance banks and primary mortgage banks (both commercial and non-interest)

However, the circular clarifies that embassies, diplomatic missions, and aid-donor agencies will no longer enjoy exemptions from specific cash-related policies.