- CBN increases weekly withdrawal limits to N500,000 for individuals, N5 million for corporates.
- Excess deposit charges removed, but excess withdrawal now attracts new fees.
- Cash withdrawal rules apply across ATMs, PoS, bank counters under cumulative weekly limits.
- Diplomatic and donor agencies lose exemption status under new CBN cash framework.
The Central Bank of Nigeria has set the tone for a new cash-management era after approving a revised withdrawal structure that takes effect on January 1, 2026. The regulation update, signed by Dr. Rita Sike of the Financial Policy and Regulation Department, is now binding on all deposit-taking institutions across the country.
The apex bank explained that the amendment became necessary as previous circulars had become fragmented and no longer aligned with current financial realities. This new framework consolidates policy, streamlines compliance and encourages a gradual shift toward digital payments.
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Under the update, individuals may now withdraw up to N500,000 weekly, while corporations are allowed up to N5 million. Withdrawals above those limits will attract new fees, 3% for individuals and 5% for companies. The previous special monthly withdrawal window of N5 million for individuals and N10 million for businesses has officially been abolished.
Another noticeable adjustment is the removal of cumulative cash deposit charges, meaning customers can lodge funds without facing excess deposit penalties. However, once withdrawal limits are exceeded, applicable fees instantly apply.
ATM and PoS withdrawals now count toward the cumulative weekly limit, but banks may load ATMs with all denominations, a move many analysts believe will ease ATM pressure and improve availability across rural and urban communities. Meanwhile, third-party cheque payments remain capped at N100,000 per counter transaction.
To ensure accountability, banks must submit monthly reports of transactions above regulatory thresholds and maintain separate ledgers for excess cash withdrawal fees. These records will be audited under the CBN’s supervisory channels.
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Some exemptions remain, revenue-generating accounts of federal, state and local governments are still free of restrictions. Microfinance banks (MFBs) and primary mortgage banks (PMBs) also maintain exemption privileges in commercial institutions. However, embassies, donor agencies and diplomatic missions will no longer operate outside standard cash limits, marking a strict reversal from previous leniencies.
In the words of the circular: “The revised framework aims to reduce systemic risk, discourage heavy cash usage and support a safer, modern financial environment for Nigeria.”
Analysts say the new structure could reshape how Nigerians hold and move money, especially in the informal sector. Whether welcomed or challenged, the next phase of cash handling in Nigeria is officially set.
