The Central Bank of Nigeria has issued fresh guidance on its revised cash-withdrawal policy, stressing that the new limits apply strictly to naira transactions and not to withdrawals conducted in foreign currencies. The clarification comes as banks begin preparations for the implementation date of January 1, 2026.
Under the revised framework, individuals may withdraw a cumulative N500,000 per week across all channels—ATMs, POS terminals, and over-the-counter transactions—while corporate account holders may access up to N5 million weekly. The CBN said the policy is designed to reduce the rising cost of cash management, enhance security, and curb money-laundering risks.
Foreign Currency Withdrawals Unaffected
In a detailed “FAQs on Revised Cash-Related Policies” issued over the weekend, the CBN explained that the new rules do not restrict withdrawals of foreign currencies. However, the limits do apply when customers use foreign cards to withdraw naira within Nigeria.
Banks and other deposit-taking financial institutions—commercial banks, merchant banks, non-interest banks, payment service banks, microfinance banks, and primary mortgage institutions—are required to enforce the rules by setting system limits, monitoring compliance, reporting excess withdrawals, and collecting applicable fees.
How Excess Charges Will Be Calculated
To guide customers on the cost implications, the CBN illustrated how excess-withdrawal fees apply. An individual who withdraws N700,000 in a week will be deemed to have exceeded the limit by N200,000, attracting a 3% processing fee, amounting to N6,000. The apex bank added that excess fees are non-refundable.
Customers are not required to provide documentation or justification for withdrawing beyond the prescribed limits; however, applicable charges will automatically apply.
Cheque Transactions and Third-Party Limits
The new rules also extend to cheque encashment. Although cheques may still be cashed over the counter, withdrawals above the stipulated limits will attract excess-withdrawal fees. For third-party cheques, the maximum amount payable in cash is N100,000. Any amount above this threshold must be lodged into an account rather than withdrawn in cash.
Corporate cheques follow the same restrictions when issued to third parties, though corporate account holders may still withdraw up to N5 million weekly.
Reporting and Compliance Requirements
The CBN reminded financial institutions that they must maintain detailed logs and continue fulfilling statutory reporting obligations, including reports on cash transactions exceeding the limits, cash deposits, and fees charged.
Some accounts are exempt—particularly revenue-generating accounts belonging to federal, state, and local governments. Religious organisations, however, are not exempt. Microfinance and primary mortgage banks are only exempt when sourcing operational cash from correspondent banks; their customers remain subject to standard limits.
Temporary Adjustments Allowed in Cash Shortages
While banks are not permitted to alter the withdrawal limits on their own, the CBN acknowledged that temporary adjustments may be made if a financial institution experiences unusual cash shortages. In such cases, the bank must notify the Director of Currency Operations and Branch Management, with a copy sent to its supervisory department.
The apex bank also noted that the policy would be reviewed periodically to reflect economic conditions, signalling potential adjustments as implementation progresses.