The Central Bank of Nigeria (CBN) has raised the weekly cash withdrawal cap to N500,000 for individuals and N5 million for corporations across all channels.
The regulator set daily withdrawals from automated teller machines (ATMs) at N100,000, with a weekly total withdrawal of N500,000, in a circular announcing the policy change on Tuesday.
The development is a substantial departure from tougher cash policy measures adopted under the previous administration.
In December 2022, the CBN, under Godwin Emefiele, its former governor, had authorised deposit money banks and other financial institutions to limit over-the-counter cash withdrawals by individuals and business entities each week N100,000 and N500, 000, respectively.
The CBN, the latest policy reversal, also eliminated the cumulative deposit restriction, saying the fee on excess deposit “shall no longer apply”.
The regulator claims that the measures are part of initiatives to “reduce the potential for money laundering associated with the economy’s heavy reliance on cash,” address security issues, and regulate the growing expense of cash management.
The bank stated the rules, published over the years in response to developing situations in cash management, sought to limit cash usage and stimulate quicker adoption of alternate payment choices, particularly electronic payment channels.
However, with the “effluxion of time”, the apex bank said the need has arisen to streamline the policies’ provisions to reflect present-day realities.
“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 circular reads.
“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 corporates. 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 percent to the bank or financial institution.”
Join Our Social Media Channels:
WhatsApp: NaijaEyes
Facebook: NaijaEyes
Twitter: NaijaEyes
Instagram: NaijaEyes
TikTok: NaijaEyes
