CBN Revises Cash Withdrawal Rules: What Nigerians Need to Know (Effective January 2026)
The Central Bank of Nigeria (CBN) has announced a significant revision to its cash withdrawal policies, effective January 1, 2026. These changes are aimed at strengthening security, curbing money laundering, and reducing the high costs associated with managing physical currency, as the nation continues its push towards a more cashless economy.
Table of Contents
Overview and Rationale
New Withdrawal and Deposit Rules
Weekly Withdrawal Limits
Excess Withdrawal Fees
ATM & Cheque Limits
Discontinuation of Special Authorisation
Compliance and Reporting Obligations
Exemptions and Superseding Provisions
Related Policy: POS Agent Limits
1. Overview and Rationale
The CBN’s revised cash-related policies streamline existing provisions to reflect current economic realities. The core objective is to reduce the country’s heavy dependence on physical cash and encourage the accelerated adoption of electronic payment channels.
Effective Date: January 1, 2026.
Signatory: Dr. Rita I. Sike, Director of the Financial Policy & Regulation Department.
Reduce the cost of cash management.
Strengthen security.
Curb money laundering risks.
2. New Withdrawal and Deposit Rules
Weekly Withdrawal Limits
A uniform weekly maximum limit across all channels (Over-The-Counter, ATM, POS, etc.) has been set:
| Entity | New Weekly Withdrawal Limit |
| Individuals | ₦500,000 |
| Corporate Entities | ₦5,000,000 |
Excess Withdrawal Fees
Any withdrawal above the specified weekly thresholds will attract a mandatory fee, which will be shared between the CBN and the financial institution:
Individuals: Three percent (3%) processing fee.
Corporate Entities: Five percent (5%) processing fee.
ATM & Cheque Limits
ATM Daily/Weekly Cap: Daily withdrawals from ATMs are capped at ₦100,000 per customer, subject to the overall weekly limit of ₦500,000.
ATM Denominations: All currency denominations may now be loaded in ATMs.
Third-Party Cheques: The over-the-counter encashment limit for third-party cheques remains at ₦100,000. These withdrawals will also count toward the cumulative weekly withdrawal limit.
Discontinuation of Special Authorisation
The previous allowance that granted a special authorisation for a single, large monthly cash withdrawal has been discontinued.
Previous Allowance (Discontinued): Individuals could withdraw ₦5 million once monthly, and corporates ₦10 million once monthly, under special authorisation.
3. Compliance and Reporting Obligations
Deposit Money Banks (DMBs) have been given stricter compliance and reporting mandates to ensure the policy’s effectiveness:
Monthly Reporting: DMBs must submit monthly reports to relevant CBN supervisory departments, detailing all cash withdrawals and deposits that exceed the specified limits.
Separate Accounts: Banks are required to create distinct accounts for warehousing the processing charges collected on all excess withdrawals.
4. Exemptions and Superseding Provisions
Exempted Accounts
The following account types are exempted from the new withdrawal limits and excess withdrawal fees:
Revenue-generating accounts of federal, state, and local governments.
Accounts of microfinance banks (MFBs).
Accounts of primary mortgage banks (PMBs) with commercial and non-interest banks.
Withdrawn Exemptions
Exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn under the new circular.
The circular clarifies that it supersedes certain earlier directives while being without prejudice to the provisions of others, as detailed in its appendices.
5. Related Policy: POS Agent Limits
In a separate, but related, directive issued in October 2025, the CBN set specific limits and reporting obligations for Point-of-Sale (POS) agents:
Agent’s Daily Limit: POS agents are restricted to a maximum of ₦1.2 million in daily transactions.
Customer’s Daily Limit: Individual customers using POS agents are limited to ₦100,000 in daily transactions.
Reporting: Financial institutions must submit detailed monthly reports on their POS agents’ activities, including comprehensive data on the nature, value, and volume of transactions.
These POS limits are designed to enhance financial integrity, curb misuse of the agent banking framework, and protect consumers.
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