The Central Bank of Nigeria (CBN) has announced major changes to its cash withdrawal regulations, ending the special approval previously granted for individuals to withdraw N5 million and corporates N10 million once a month. The new rules take effect on January 1, 2026.
The announcement was contained in a circular issued on Tuesday, December 2, 2025, and signed by Dr. Rita I. Sike, Director of the Financial Policy and Regulation Department. The CBN noted that although various cash-related policies were introduced in the past to address emerging challenges, a comprehensive review became necessary to reflect the realities of the current financial system.
According to the apex bank, the revised policies aim to reduce the high cost of managing physical cash, enhance security, and limit money laundering risks in an economy still heavily dependent on cash-based transactions.
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“These policies… sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic channels. With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,” the circular stated.
New Withdrawal and Deposit Limits
Effective January 2026:
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Individuals may withdraw a maximum of N500,000 per week across all channels.
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Corporate organisations may withdraw up to N5 million weekly.
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Withdrawals above these limits will attract 3% excess charges for individuals and 5% for corporates, shared between the CBN and the banks.
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ATM withdrawals are capped at N100,000 per day, with a N500,000 weekly maximum, counted as part of the overall weekly withdrawal limit.
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The special authorisation for monthly N5m/N10m withdrawals has been scrapped.
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All currency denominations can now be loaded into ATMs.
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Over-the-counter withdrawals using third-party cheques remain limited to N100,000, also included in the weekly limit.
Compliance Requirements for Banks
Deposit Money Banks must:
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Submit monthly reports on cash withdrawals above approved thresholds.
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Submit monthly reports on cash deposits.
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Maintain dedicated accounts for storing excess withdrawal charges.
Exemptions and Withdrawn Privileges
Under the new rules:
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Government revenue accounts at federal, state and local levels are exempted.
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Accounts belonging to microfinance banks and primary mortgage banks operating with commercial and non-interest banks are also exempt.
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However, previous exemptions for embassies, diplomatic missions and donor agencies have been withdrawn.
The CBN clarified that while the circular aligns with some previous directives, it overrides others as outlined in attached appendices.
Related Policy Developments
The new regulation follows an October directive requiring financial institutions to file detailed monthly reports on Point-of-Sale (POS) agent activities. That policy, signed by Musa Jimoh, Director of Payments System Policy sets:
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N1.2 million daily transaction limit for POS agents
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N100,000 daily limit for individual customers using POS channels
The CBN said the restrictions are intended to prevent abuse, strengthen financial integrity and enhance consumer protection within the expanding agent banking ecosystem.
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