By Nchetachi Chukwuajah
The Central Bank of Nigeria (CBN) has increased cash withdrawal limits on all channels to N500,000 weekly for individuals and N5 million for corporates, effective January 1, 2026.
The apex bank also pegged automated teller machine (ATM) withdrawals at N100,000 daily, with a weekly cumulative withdrawal of N500,000.
It also said the cumulative cash deposit limit has been fully removed, and banks will no longer charge customers fees for deposits exceeding previously set thresholds, saying the move is aimed at encouraging more deposits and expanding liquidity within the financial system.
The CBN announced these in a circular signed by the Director, Financial Policy and Regulation Department, Dr Rita Sike.
It said the policy overhaul was necessary to reduce the rising cost of cash management, strengthen security around cash movement, and curb money laundering risks in an economy still heavily reliant on physical currency.
The apex bank noted that earlier cash policies were introduced to manage changing economic conditions, adding that the time had come to adjust those rules to meet current realities.
Recall that in December 2022, the CBN under Godwin Emefiele had directed deposit money banks and other financial institutions to limit weekly over-the-counter cash withdrawals by individuals and corporate entities to N100,000 and N500,000, respectively.
The new cash withdrawal guideline read: “Consequently, effective January 1, 2026, the following cash-related policies, which are for mandatory compliance by all deposit-taking financial institutions in Nigeria, shall apply nationwide.
“The cumulative deposit limit is hereby removed, and the fee for excess deposit shall no longer apply.
“The cumulative weekly withdrawal limit across all channels shall be N500,000 for individuals and N5 million for corporate organisations. Cumulative weekly withdrawals above these limits shall attract excess withdrawal fees as indicated in ‘5’ below.
“The special authorisation for withdrawal of N5 million and N10 million once monthly by individuals and corporates, respectively, shall no longer apply.
“Automated Teller Machine (ATM) withdrawal limit shall be N100,000 daily (per customer), subject to a maximum of N500,000 weekly. As indicated in ‘2’ above, cash withdrawals from ATMs and point of sale devices are part of the weekly withdrawal limit indicated therein.
“Excess cash withdrawals (withdrawals above the levels indicated in ‘2’ above) shall attract fees of 3 percent and 5 percent to individual and corporate customers, respectively, on the excess amount withdrawn. The fee shall be shared 40 percent to the CBN and 60 per cent to the bank or financial institution.”
The circular also stated that all currency denominations “may be loaded in ATMs.”
The CBN, however, retained the limit on over-the-counter encashment of third-party cheques at N100,000.
It said: “Account holders are advised that any withdrawal under this section will form part of the cumulative weekly set in ‘2’ above.”
“Banks shall render the following monthly returns (in a format to be advised) to the respective supervisory departments (Banking Supervision Department, Other Financial Institutions Supervision Department, and Payments System Supervision Department) as applicable: a. Returns on cash withdrawal transactions above the specified limit; b. Returns on Cash Deposits
“Deposit Money Banks (DMBs) shall create separate accounts to warehouse processing charges collected on cash withdrawals above the limits.
“The following accounts/entities are exempted from the application of sections 2 and 5 of this circular: i. Revenue-generating accounts of federal, state, and local governments; and ii. Accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks.”
The apex bank also said the exemption of embassies, diplomatic missions, and aid-donor agencies from specific cash policies “shall no longer apply.”
