Prime Business Africa
The Central Bank of Nigeria (CBN) has increased the cash withdrawal limit on automated teller machines (ATMs) and point of sale (POS) devices to N500,000 weekly for individuals and N5 million for corporates.
In a statement on December 2, CBN also said the special authorisation for withdrawal of N5 million and N10 million once monthly by individuals and corporates, respectively, shall no longer apply.
Join our WhatsApp Channel“As part of efforts to moderate the rising cost of cash management, address security concerns, and reduce the potential for money laundering associated with the economy’s heavy reliance on cash, the Central Bank of Nigeria implemented several cash-related policies,” CBN said.
“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels. With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities.”
CBN’s 10 Directives To Banks
The CBN said the new directives to banks will take effect from January 1, 2026, and mandated all banks to comply.
1. The cumulative deposit limit is hereby removed, and the fee for excess deposit shall no longer apply.
2. The cumulative weekly withdrawal limit across all channels shall be №500,000 for individuals and 45 million for corporates. Cumulative weekly withdrawals above these limits shall attract excess withdrawal fees as indicated in ‘5’ below.
3. Exceptional Authorisation for Cash Withdrawal The special authorisation for withdrawal of N5 million and 10 million once monthly by individuals and corporates, respectively, shall no longer apply.
4. Automated Teller Machine (ATM) withdrawal limit shall be N100,000 daily (per customer), subject to a maximum of N500,000 weekly. As indicated in ‘2’ above, cash withdrawals from ATMs and point of sale devices are part of the weekly withdrawal limit indicated therein.
5. Excess cash withdrawals (withdrawals above the levels indicated in ‘2’ above) shall attract fees of 3 percent and 5 percent to individual and corporate customers, respectively, on the excess amount withdrawn. The fee shall be shared 40 percent to the CBN and 60 percent to the bank or financial institution.
6. All currency denominations may be loaded in ATMs.
7. The limit on over-the-counter encashment of 3rd party cheques is retained at N100,000. Account holders are advised that any withdrawal under this section will form part of the cumulative weekly set in ‘2’ above.
8. Banks shall render the following monthly returns (in a format to be advised) to the respective supervisory departments (Banking Supervision Department, Other Financial Institutions Supervision Department and Payments System Supervision Department) as applicable.
a. Returns on cash withdrawal transactions above the specified limit; b. Returns on Cash Deposits.
9. Internal Ledger for Charges Deposit Money Banks (DMBs) shall create separate accounts to warehouse processing charges collected on cash withdrawals above the limits.
10. Exemptions; a. The following accounts/entities are exempted from the application of sections 2 and 5 of this circular: i. Revenue-generating accounts of federal, state, and local governments; and ii. Accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks.
b. The exemption of embassies, diplomatic missions and aid-donor agencies from specific cash policies shall no longer apply.
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