CBN Announces Major Changes to Cash Withdrawal Policy
The central Bank of Nigeria has introduced a sweeping reform to Nigeria’s cash policy, officially removing all cash deposit limits and increasing weekly withdrawal thresholds for account holders nationwide. The new directive becomes effective January 1, 2026.
According to the announcement, individuals can now withdraw up to N500,000 weekly, while corporate organisations are allowed N5 million. The Central Bank Nigeria noted that the review is part of ongoing efforts to simplify financial transactions while maintaining oversight of high-volume cash movements.
New Penalties for Exceeding Withdrawal Limits
The central Bank of Nigeria outlined fresh charges for withdrawals exceeding the approved limits:
- 3% fee for individuals
- 5% fee for corporates
Daily ATM withdrawal caps remain unchanged at N100,000, ensuring that the current cash machine limit stays in place.
Other Key Directives from CBN
- Cash deposit limits have been abolished across all financial institutions.
- Special monthly authorisations for higher withdrawals have been removed.
- Government accounts and microfinance institutions are exempt from the charges.
- Embassy exemptions under previous cashless guidelines have been officially cancelled by the CBN.
CBN’s Position on the New Policy
The CBN explained that the updated framework is designed to improve convenience for citizens, reduce bottlenecks in cash transactions, and strengthen the overall financial system while still promoting digital payment adoption.
Abuja Affairs will continue to track reactions from banks, market leaders, and financial experts as the new CBN policy rolls out
Read Capitalisation: Fidelity Bank opens N127bn public offer
