The Central Bank of Nigeria (CBN) has announced a major overhaul of nationwide cash withdrawal rules, abolishing the special monthly authorisations that previously allowed individuals to take out up to ₦5 million and businesses up to ₦10 million in cash.
The changes, contained in a circular dated December 2, 2025 and signed by Dr Rita I. Sike, Director of Financial Policy and Regulation, will take effect on January 1, 2026.
According to the apex bank, the revised policy is intended to lower the huge costs associated with handling physical cash, improve security, and reduce opportunities for money laundering in an economy still heavily dependent on banknotes.
Key provisions of the new regime include:
– Weekly over-the-counter cash withdrawal ceiling of ₦500,000 for individuals and ₦5 million for corporate customers across all channels.
– Any amount withdrawn above these caps will incur penalty fees of 3% for individuals and 5% for businesses, with the revenue shared between the CBN and the collecting bank.
– Daily ATM withdrawal limit of ₦100,000 per customer, counting towards the overall weekly ceiling of ₦500,000.
– Complete removal of the former “special authorisation” that permitted one large monthly cash withdrawal (₦5 million for individuals, ₦10 million for corporates).
– Permission for banks to load all naira denominations into ATMs, while third-party cheque encashment over the counter stays capped at ₦100,000 and is included in the weekly limit.
Banks will be required to file monthly reports on all large cash movements and maintain dedicated accounts for the penalty fees collected.
Government revenue accounts at all tiers, as well as accounts held by microfinance banks and primary mortgage banks at commercial banks, are fully exempt from the new restrictions and charges.
However, previous exemptions enjoyed by embassies, diplomatic missions, and international donor agencies have been cancelled.
The CBN noted that the updated rules build on earlier cash-limit policies introduced over the years to push Nigerians toward electronic payments, but have now been streamlined “to reflect present-day realities.”
The announcement comes just weeks after the regulator imposed stricter daily and monthly transaction caps on Point-of-Sale (PoS) agents and intensified reporting requirements on agent banking activities, underscoring a broader drive to bring more cash circulation under formal oversight.
Analysts say the tighter rules will further accelerate the shift to digital payments while making large cash transactions more expensive and cumbersome for businesses and high-net-worth individuals who still prefer physical currency.
