The Central Bank of Nigeria (CBN) has announced revised cash-related policies aimed at reducing the country’s heavy reliance on physical currency and promoting digital payment channels, effective January 1, 2026.
In a circular dated December 2, 2025, and signed by Dr. Rita I. Sike, Director of the Financial Policy & Regulation Department, the apex bank outlined significant changes to cash withdrawal regulations for all deposit-taking financial institutions operating in Nigeria.
The new regulations establish a cumulative weekly withdrawal limit of ₦500,000 for individuals and ₦5 million for corporate entities across all banking channels.
Withdrawals exceeding these thresholds will attract fees of 3% and 5% for individual and corporate customers, respectively, with the charges split 40% to the CBN and 60% to the affected financial institution.
Daily ATM withdrawal limits have been set at ₦100,000 per customer, with a maximum weekly limit of ₦500,000. The central bank emphasized that ATM and point-of-sale transactions count toward the cumulative weekly withdrawal threshold.
Several previous authorization mechanisms have been discontinued under the new framework. The special authorization allowing individuals to withdraw ₦5 million and corporations to withdraw ₦10 million on a monthly basis will no longer be applicable. Additionally, the cumulative deposit limit and associated fees for excess deposits have been removed.
The exemption previously granted to embassies, diplomatic missions, and aid-donor agencies from specific cash policies has also been eliminated.
The circular mandates that all currency denominations may now be loaded in ATMs, while maintaining a limit of ₦100,000 on over-the-counter encashment of third-party cheques.
Financial institutions must submit monthly returns on cash withdrawal transactions exceeding specified limits and cash deposits to the relevant supervisory departments. Deposit Money Banks are required to create separate internal ledger accounts for processing charges collected on excess cash withdrawals.
Revenue-generating accounts of federal, state, and local governments, as well as accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, remain exempt from sections 2 and 5 of the circular.
The CBN stated that the policy revisions aim to address security concerns, reduce potential money laundering risks, and moderate the rising cost of cash management in Nigeria’s economy. The move aligns with the central bank’s ongoing efforts to accelerate the adoption of electronic payment channels nationwide.
The circular supersedes previous provisions outlined in the referenced appendices while maintaining consistency with other existing cash-related regulations.
