Nigerians Can Withdraw N500,000 Weekly in New CBN Cash Policy
The Central Bank of Nigeria (CBN) has announced a comprehensive overhaul of the nation’s cash management regulations, introducing a revised framework designed to cut cash-handling costs, enhance the security of cash movements, and mitigate money-laundering risks linked to high physical currency usage.
In a circular signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, the apex bank outlined new mandatory rules for all deposit-taking financial institutions, effective January 1, 2026. The reforms aim to consolidate years of cash-related directives and align policy with current economic realities.
A key change is the removal of the previous cumulative deposit limit and the associated excess deposit charges. Under the new system, individuals may withdraw up to ₦500,000 weekly across all channels, including bank counters, ATMs, and PoS terminals while corporates are limited to ₦5 million weekly.
Withdrawals exceeding these limits will incur a fee of 3% for individuals and 5% for corporates, to be shared between the CBN and financial institutions in a 40:60 ratio. Notably, the earlier provision permitting individuals and corporates to make one-time monthly withdrawals of ₦5 million and ₦10 million with special approval has been discontinued.
ATM withdrawals are now capped at ₦100,000 daily and count toward the weekly cumulative limit. Financial institutions have also been granted greater flexibility to load ATMs with all currency denominations.
However, over-the-counter encashment of third-party cheques remains limited to ₦100,000 and is included in the weekly withdrawal cap.
Banks are required to submit monthly returns on all cash transactions above the stipulated limits and maintain separate internal ledgers to track processing fees collected from excess withdrawals.
The new framework narrows exemptions. While revenue accounts of federal, state, and local governments, as well as accounts held by microfinance and primary mortgage banks with commercial banks, remain exempt, embassies, diplomatic missions, and donor agencies will no longer enjoy special exclusion from cash restrictions.
According to the CBN, the revised cash policy supports a broader strategy to reduce systemic risk, drive adoption of electronic payments, and foster a safer, more efficient financial system.
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