-New Policy Aims to Cut Cash Usage, Boost Electronic Payments*
The Central Bank of Nigeria (CBN) has announced a major overhaul of its cash withdrawal policy, discontinuing special authorisations that previously allowed individuals and corporates to make high-value cash withdrawals above standard limits. The new rules take effect on January 1, 2026.
Under the revised guidelines, individuals will be permitted a maximum weekly cash withdrawal of ₦500,000 across all channels, while corporate entities will be limited to ₦5 million per week. Withdrawals beyond these limits will attract processing fees of 3% for individuals and 5% for corporates, to be shared between the CBN and financial institutions.
Key changes include:
– Daily ATM withdrawals capped at ₦100,000 per customer, contributing to the weekly limit.
– Discontinuation of the special monthly authorisation that permitted individuals and corporates to withdraw up to ₦5 million and ₦10 million, respectively.
– All denominations of the naira can now be loaded in ATMs.
– Third-party cheque encashment remains limited to ₦100,000 over the counter and counts toward the weekly withdrawal cap.
The CBN stated that the updated policy is intended to reduce the cost of cash management, improve security, and mitigate money laundering risks linked to high cash dependency in the economy.
Banks are required to submit monthly reports on cash transactions exceeding the set thresholds and maintain separate accounts for excess withdrawal charges.
Exemptions apply to accounts of federal, state, and local governments, as well as microfinance and primary mortgage banks. However, exclusions previously granted to diplomatic missions and aid agencies have been revoked.
The circular, signed by Dr. Rita I. Sike, Director of the Financial Policy and Regulation Department, aligns with the bank’s broader efforts to promote electronic payments and strengthen Nigeria’s payment system infrastructure.
This move follows earlier CBN directives, including transaction limits on POS agents, as part of ongoing reforms to ensure financial system stability and consumer protection.
