By Seun Ibiyemi
The Central Bank of Nigeria (CBN) has announced a major overhaul of the nation’s cash withdrawal framework, discontinuing the special authorisation that previously allowed individuals to withdraw up to N5 million and corporate bodies N10 million once a month. The new rules take effect from January 1, 2026.
In a circular issued Tuesday, December 2, 2025, and signed by Dr. Rita I. Sike, Director of the Financial Policy & Regulation Department, the apex bank said the policy changes reflect the need to streamline Nigeria’s cash management system in line with current economic realities.
According to the CBN, earlier cash-related policies were developed in response to evolving economic challenges and were aimed at reducing dependence on physical cash while promoting electronic payment channels.
However, the bank said it has become necessary to revise these measures to address rising security concerns, reduce cash-handling costs, and curb money laundering risks.
Under the revised framework, individuals may withdraw a maximum of N500,000 per week, while corporate entities may withdraw up to N5 million weekly across all channels.
Withdrawals beyond these limits will attract excess charges of 3 per cent for individuals and 5% for corporates, to be shared between the CBN and financial institutions.
The circular also introduces a daily ATM withdrawal cap of N100,000, subject to a cumulative weekly limit of N500,000, with all transactions counting toward the overall weekly threshold.
In addition, the central bank confirmed that all currency denominations may now be loaded into ATMs, while the N100,000 over-the-counter limit for third-party cheques remains unchanged and will count toward the weekly withdrawal cap.
Deposit Money Banks are required to file monthly reports on withdrawals above the approved limits and on cash deposits. They must also open dedicated accounts to manage processing fees collected from excess withdrawals.
Certain government-related accounts covering federal, state, and local revenue-generating agenciesbalong with microfinance and primary mortgage banks operating with commercial or non-interest banks, are exempted from the new rules.
However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.
The CBN noted that while the circular does not invalidate all previous directives, it supersedes aspects of earlier guidelines as outlined in its appendices.
The apex bank emphasized that the revised rules form part of broader efforts to modernize Nigeria’s payment ecosystem and enhance the efficiency and security of cash management nationwide.