The Central Bank of Nigeria has introduced revised cash withdrawal rules, set to take effect on January 1, 2026. The new regulations aim to reduce the cost of cash management, strengthen security, and mitigate money laundering risks associated with the country’s reliance on physical currency.

In a circular issued on December 2, 2025, the bank explained that the previous cash policies were introduced in response to evolving circumstances, but the need has arisen to streamline these provisions to reflect present-day realities. The revised rules end the special authorization permitting individuals to withdraw ₦5 million and corporates ₦10 million once monthly.

Under the new rules, individuals will be allowed to withdraw up to ₦500,000 weekly across all channels, while corporate entities will be limited to ₦5 million. Withdrawals above these thresholds will attract excess withdrawal fees of three percent for individuals and five percent for corporates. The charges will be shared between the Central Bank of Nigeria and the financial institutions.

Daily withdrawals from Automated Teller Machines will be capped at ₦100,000 per customer, with a maximum of ₦500,000 per week. These transactions will count toward the cumulative weekly withdrawal limit. The bank has also confirmed that all currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at ₦100,000.

Deposit Money Banks are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments. They must also create separate accounts to warehouse processing charges collected on excess withdrawals. Revenue-generating accounts of federal, state, and local governments, as well as accounts of microfinance banks and primary mortgage banks, are exempt from the new withdrawal limits and excess withdrawal fees. However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.

The revised rules are part of the Central Bank of Nigeria’s efforts to promote a cashless economy and reduce the risks associated with physical currency. The bank has been working to encourage the adoption of electronic payment channels and reduce cash usage. The new rules are expected to have a significant impact on the country’s financial system and will likely lead to increased use of digital payment methods.