The Central Bank of Nigeria (CBN) has unveiled sweeping changes to the nation’s cash withdrawal regulations, signaling a major shift in its long-term strategy to reduce cash dependency and strengthen financial security. The revised rules will officially come into force on January 1, 2026.

This update ends the special approval window that previously allowed individuals to withdraw up to ₦5 million and corporate bodies up to ₦10 million monthly.

The CBN explained that while earlier policies were introduced to respond to specific moments in Nigeria’s evolving economic landscape, current realities now require a more streamlined and modern approach.

Dr. Rita I. Sike, Director of the Financial Policy & Regulation Department, stated in a circular issued on December 2, 2025, that the reforms aim to cut the cost of handling physical cash, reduce security risks, and curb money laundering activities associated with Nigeria’s largely cash-driven economy.

“The policies introduced over the years sought to discourage excessive cash usage and encourage the adoption of electronic payment systems,” the CBN noted. “With time, it has become necessary to consolidate and update these measures to reflect today’s operational environment.”

New Withdrawal Limits for Individuals and Corporates

Under the revised guidelines:

* Individuals may withdraw a maximum of ₦500,000 per week across all banking channels.

* Corporate organisations will be restricted to ₦5 million weekly.

Any withdrawal exceeding these amounts will attract excess charges:

* 3% for individuals

* 5% for corporates

These fees will be shared between the CBN and participating financial institutions.

ATM Withdrawals and Third-Party Cheques

The apex bank also announced new limits for Automated Teller Machines:

* Daily ATM withdrawals are capped at ₦100,000 per customer.

* Weekly ATM withdrawals may not exceed ₦500,000, and all such transactions will count toward the overall withdrawal limit.

In addition, all denominations of the naira may now be loaded into ATMs for greater flexibility.

The existing ₦100,000 limit on over-the-counter encashment of third-party cheques remains in place and will also count toward the weekly withdrawal cap.

Reporting Requirements and Exemptions

To ensure strict compliance, Deposit Money Banks must:

* Submit monthly reports of all withdrawals exceeding the approved limits.

* Report all significant cash deposits to the CBN.

* Maintain dedicated accounts for storing fees collected on excess cash withdrawals.

Certain accounts will continue to enjoy exemptions from the new limits, including:

* Federal, state, and local government revenue accounts

* Accounts belonging to microfinance banks and primary mortgage banks

Also Read: Kebbi Schoolgirls: FG Denies Paying Ransom, Explains Release Factors

However, exemptions previously granted to embassies, diplomatic missions, and donor agencies have now been revoked.

Circular Overrides Earlier Directives

The CBN clarified that while the circular does not invalidate all previous policies, it overrides several conflicting directives. A list of affected policies is included in the circular’s appendices.

The revised cash withdrawal system represents one of the most significant policy shifts in recent years and is expected to accelerate Nigeria’s transition toward a more digital and transparent financial ecosystem.