The Central Bank of Nigeria (CBN) has unveiled a major overhaul of the nation’s cash withdrawal framework, announcing the discontinuation of the special authorisation that previously allowed individuals to withdraw up to ₦5 million and corporate entities ₦10 million once a month. The new rules, which take effect on January 1, 2026, signal a renewed push by the apex bank to reduce the economy’s dependence on physical cash, improve security, and strengthen oversight of financial flows.
In a circular dated December 2, 2025, and signed by Dr. Rita I. Sike, Director of the Financial Policy & Regulation Department, the CBN explained that the reforms were necessary due to the increasing cost of cash management and the persistent risks associated with cash-heavy transactions, including money laundering vulnerabilities. According to the apex bank, previous policies were implemented at various times to address immediate challenges within the payment system, but evolving realities now require a streamlined and modernized approach.
The circular stated that past cash-related directives were crafted to “reduce cash usage and encourage accelerated adoption of electronic payment channels.” However, with significant shifts in technology, financial behaviour, and security considerations, the bank believes the time is right to recalibrate the rules to better align with today’s economic dynamics.
New Withdrawal and Deposit Rules
Under the revised policy framework, individuals will be restricted to ₦500,000 weekly withdrawals across all banking channels, including ATMs, point-of-sale terminals, and over-the-counter transactions. Corporate organisations, however, will be permitted to withdraw up to ₦5 million weekly.
Withdrawals that exceed these thresholds will attract excess withdrawal fees—3% for individuals and 5% for corporates. These charges will be jointly shared by the CBN and the financial institutions involved.
Additionally:
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ATM withdrawals will be capped at ₦100,000 per day, with a total weekly ceiling of ₦500,000, which forms part of the overall withdrawal limit.
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All denominations of the naira may now be dispensed through ATMs, removing previous restrictions on the types of notes that could be loaded.
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The ₦100,000 over-the-counter limit for third-party cheques remains unchanged, and such withdrawals also contribute to the cumulative weekly limit.
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The special authorization window that previously allowed high-value withdrawals without penalty has been officially abolished.
Compliance, Reporting, and Exemptions
Deposit Money Banks must now submit monthly reports on all withdrawals exceeding the set limits, as well as detailed breakdowns of cash deposits, to the appropriate CBN supervisory units. Banks are also required to maintain dedicated accounts for storing charges collected from excess withdrawals.
Several exemptions, however, have been defined. Government revenue-generating accounts at the federal, state, and local levels are excluded from both the withdrawal limits and the associated fees. Accounts belonging to microfinance banks and primary mortgage banks, when operated with commercial or non-interest banks, are also exempted.
Notably, previously granted exemptions for embassies, diplomatic missions, and aid-donor agencies have now been withdrawn, signaling a shift toward more uniform enforcement across all entities.
The CBN clarified that while the new circular does not nullify all previous directives, it supersedes certain aspects of earlier guidelines, as itemized in its appendices.
Regulatory Context
The updated policy builds on a series of reforms aimed at improving transaction transparency and curbing abuse within the payment ecosystem. In October, the CBN mandated that financial institutions submit monthly reports detailing the activities of Point-of-Sale (POS) agents, including transaction volumes, values, and service types. It also reiterated limits of ₦1.2 million per day for POS agents and ₦100,000 daily for individual customers, citing the need to enhance consumer protection and safeguard the integrity of agent banking operations.
With the January 2026 rules, the CBN is reinforcing its long-term objective of promoting a more efficient, secure, and digitized financial system—one in which electronic payment channels, rather than physical cash, drive the bulk of daily transactions.
