The Central Bank of Nigeria (CBN) has introduced sweeping changes to its cash withdrawal policy, raising the individual withdrawal limit from N100,000 to N500,000 and eliminating all charges on cash deposits. 

The announcement was made in a circular dated December 2, 2025, signed by Rita I. Sike, Director of the Financial Policy and Regulation Department.

The new policy, which takes effect on January 1, 2026, marks a significant departure from the stringent cash restrictions first implemented three years ago. 

On December 6, 2022, the CBN had slashed withdrawal limits by up to 83 percent as part of a broader push to reduce physical cash circulation and promote electronic payments. 

Under that earlier regime, over-the-counter withdrawals for individuals and corporates were capped at N100,000 and N500,000 respectively.

According to the latest circular, the cumulative limit on cash deposits has now been fully removed, and the fees previously applied to deposits exceeding set thresholds have been scrapped. 

The apex bank also set a new cumulative weekly withdrawal limit of N500,000 for individuals and N5 million for corporate organisations across all channels, including ATMs, point-of-sale (PoS) terminals and over-the-counter transactions. Withdrawals beyond these limits will attract excess withdrawal fees.

The CBN has abolished the special authorisation window that previously allowed one-off monthly withdrawals of N5 million for individuals and N10 million for corporates. 

Furthermore, ATM withdrawals are now capped at N100,000 daily per customer, with a weekly ceiling of N500,000. All ATM and PoS withdrawals will count toward the weekly limit. 

Cash withdrawals above approved levels will attract processing fees of three percent for individuals and five percent for corporates, with the proceeds shared between the CBN and commercial banks in a 40–60 ratio.

In another key adjustment, banks may now load all denominations into ATMs, restoring flexibility to cash dispensing operations. 

The existing limit on third-party cheque encashment remains at N100,000, and such withdrawals will also count toward the weekly withdrawal cap.

Banks are mandated to submit monthly reports on cash withdrawal transactions exceeding the permissible limits, as well as on cash deposits, to their respective supervisory departments. They must also maintain internal ledgers to record processing fees accrued from excess withdrawals.

The new framework includes specific exemptions: accounts belonging to federal, state and local government revenue agencies, as well as accounts held by microfinance banks and primary mortgage banks with commercial and non-interest banks, will not be subject to the withdrawal ceilings or excess fees. 

However, exemptions previously granted to embassies, diplomatic missions and aid donor agencies have been withdrawn, requiring full compliance from these entities.

Explaining the rationale behind the review, the CBN noted that past cash-management policies were introduced to curb the high cost of cash handling, reduce security risks and limit money-laundering vulnerabilities while encouraging a shift toward electronic payment systems. 

The revision, it said, was necessary to streamline regulations in line with current economic realities and enhance operational efficiency across the financial system.

The circular clarifies that while the provisions of some earlier circulars remain valid, the new directive supersedes others listed in Appendix 2. 

The CBN urged all financial institutions and stakeholders to ensure full compliance with the revised guidelines.