The Central Bank of Nigeria has announced new cash withdrawal rules that will take effect from January 1, 2026, ending the special permission that allowed individuals to withdraw N5 million and businesses N10 million once a month. This change was confirmed in a circular dated December 2, 2025, signed by the Director of the Financial Policy and Regulation Department, Ms Rita I. Sike.
According to the apex bank, the revised policy is aimed at cutting the cost of cash handling, improving security, and reducing money laundering linked to the economy’s heavy dependence on physical cash.
The bank explained that its cash-related policies have evolved over time in response to changing realities. It stated, “These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels. With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,” showing that the updated step is designed to modernise the financial system.
Under the new directive, individuals will now be allowed to withdraw a maximum of N500,000 weekly across all channels, while corporate bodies will be restricted to N5 million weekly. Any withdrawal beyond these limits will attract extra charges, with individuals paying 3 per cent in excess fees and corporate organisations paying 5 per cent. These fees will be shared between the central bank and financial institutions.
Daily Automated Teller Machine withdrawals will be capped at N100,000 per customer, with a total of N500,000 allowed weekly, meaning ATM transactions will count toward the overall weekly limit. The CBN confirmed that the special monthly authorisation for higher withdrawals has now been discontinued. Another update allows banks to load all denominations in ATMs while keeping the N100,000 over-the-counter cashing limit for third-party cheques. The bank noted that such payments will also be part of the weekly total limit.
Deposit Money Banks must now send monthly reports to the appropriate supervisory departments on all withdrawals above the designated limits, as well as cash deposits. They are also expected to create separate accounts to hold processing charges collected from extra withdrawals. However, the directive exempts revenue collection accounts of federal, state, and local governments. Accounts belonging to microfinance banks and primary mortgage banks operated with commercial and non-interest banks are also exempted.
On the other hand, exemptions earlier granted to diplomatic missions, embassies, and aid donor agencies have been withdrawn. The central bank said the circular overrides some earlier rules but remains in line with other existing directives listed in its appendices. This marks another measure by the bank to strengthen the Nigerian financial space following its October directive requiring all financial institutions to provide detailed monthly data on Point-of-Sale agent activities.
In that October circular signed by the Director of the Payments System Policy Department, Mr Musa Jimoh, it was ordered that banks must include full information on the nature, value, and number of transactions carried out by POS agents.
The directive also set a maximum daily limit of N1.2 million for POS agents, while individual customers are allowed transactions of up to N100,000 daily. The CBN said the limits were introduced to prevent misuse, improve transparency, and protect users within the agent banking system.
