In a decisive move aimed at modernising Nigeria’s cash-management framework, the Central Bank of Nigeria (CBN) has introduced a sweeping revision to its cash withdrawal policy—abolishing the long-standing special authorisation that allowed individuals to withdraw up to N5 million and corporate entities N10 million once monthly.
The new policy becomes effective January 1, 2026, signalling a significant shift in how cash circulates across the economy.
A Flashback: Years of Adjusting to a Cash-Heavy Economy
For more than a decade, Nigeria has struggled with the high cost, systemic leakage, and security vulnerabilities associated with excessive cash usage. In response, the CBN periodically introduced measures—from daily ATM limits to stricter Know-Your-Customer (KYC) rules—to discourage cash hoarding and promote electronic payments.
Financial analysts recall how the earlier waivers for large monthly withdrawals were implemented to accommodate transitional challenges faced by businesses and high-net-worth individuals. But the policy often fueled loopholes exploited for cash-based transactions, bulk withdrawals, and untracked movements of funds.
Today, the CBN says those transition years are over.
“These policies… sought to reduce cash usage and encourage accelerated adoption of other payment options… With the effluxion of time, the need has arisen to streamline these provisions to reflect present-day realities,”
— Dr. Rita I. Sike, Director, Financial Policy & Regulation Department, CBN.
New Rules: Lower Limits, Higher Sanctions
Under the revised framework:
Weekly Withdrawal Caps
- Individuals: Maximum of N500,000 weekly across all channels.
- Corporate Bodies: Maximum of N5 million weekly.
Excess Withdrawal Charges
- Individuals: 3% fee on any amount exceeding the limit.
- Corporates: 5% excess withdrawal fee.
- Charges will be shared between the CBN and financial institutions.
ATM Rules
- Daily ATM withdrawals capped at N100,000, and not more than N500,000 weekly.
- All ATM-loaded denominations are now permitted.
Discontinued Waivers
- The N5m/N10m monthly special authorisation for large withdrawals is now abolished.
Third-Party Cheques
- Over-the-counter withdrawals remain capped at N100,000, forming part of the weekly limit.
Compliance and Reporting: Banks Under Tighter Watch
Deposit Money Banks must:
- Submit monthly reports on withdrawals above approved limits.
- File monthly reports on cash deposits.
- Maintain separate accounts for excess withdrawal processing charges.
The apex bank says these measures are critical to tracking cash flow patterns and curbing illicit financial activities.
Exemptions and Withdrawn Privileges
Exempted from the new limits:
- Revenue-generating accounts of Federal, State, and Local Governments
- Microfinance Banks
- Primary Mortgage Banks transacting with commercial and non-interest banks
No longer exempt:
- Embassies
- Diplomatic missions
- Aid-donor agencies
The CBN noted that while some earlier directives remain valid, this circular supersedes a number of provisions, as detailed in its appendices.
Expert Reflection: A Turning Point for the Cashless Agenda
Economy watchers say the new policy represents one of the boldest steps yet in Nigeria’s push for a fully digital financial ecosystem.
Analysts argue the policy could reduce cash-based crime, improve traceability in financial transactions, and lower banking system costs—but warn it may challenge rural communities and cash-dependent small enterprises unless digital infrastructure is strengthened.
Financial inclusion advocates believe consistent POS agent regulation, such as the CBN’s earlier cap of N1.2 million daily for agents and N100,000 daily for individuals, shows a broader strategy to clamp down on misuse and protect customers.
With Nigeria ramping up efforts to clean its financial corridors, the latest withdrawal policy may go down as a critical milestone in the nation’s economic evolution.
CBN has abolished its special cash withdrawal waivers and introduced stricter limits effective January 2026. Individuals can now withdraw only N500,000 weekly and corporates N5 million, with new fees, ATM caps, and compliance rules for banks. Read the full breakdown and expert reflections.
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