The Central Bank of Nigeria has announced revised cash‑withdrawal rules that will take effect on 1 January 2026. The new regulations are intended to lower cash‑management costs, enhance security and curb money‑laundering risks linked to the country’s heavy reliance on physical currency. In a circular dated 2 December 2025, the bank explained that earlier cash policies were introduced in response to changing circumstances, but now need to be streamlined to reflect current realities.
Under the revised rules, the special authorisation that previously allowed individuals to withdraw ₦5 million and corporations ₦10 million once a month is being removed. Individuals may now withdraw up to ₦500,000 per week across all channels, while corporate entities are limited to ₦5 million per week. Withdrawals exceeding these limits will incur excess‑withdrawal fees of 3 % for individuals and 5 % for corporates; the charges will be shared between the Central Bank and the financial institutions.
Daily withdrawals from Automated Teller Machines (ATMs) will be capped at ₦100,000 per customer, with a maximum of ₦500,000 per week. These ATM transactions will count toward the cumulative weekly withdrawal limit. All currency denominations may now be loaded into ATMs, and the over‑the‑counter encashment limit for third‑party cheques remains at ₦100,000.
Deposit Money Banks must submit monthly reports on cash withdrawals that exceed the specified limits, as well as on cash deposits, to the relevant supervisory departments. They are also required to create separate accounts to hold 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 However, exemptions previously granted to embassies, diplomatic missions and aid‑donor agencies have been withdrawn.
These revisions are part of the Central Bank’s broader effort to promote a cashless economy and reduce the risks associated with physical currency. By encouraging the adoption of electronic payment channels and limiting cash usage, the new rules are expected to have a significant impact on Nigeria’s financial system and to spur greater use of digital payment methods.
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