CBN Revises Cash Withdrawal Limits: What Nigerians Must Know About January 2026 Changes
The Central Bank of Nigeria (CBN) has announced major revisions to its cash withdrawal policies, set to take effect from January 1, 2026. The changes officially discontinue the special authorisation that allowed individuals to withdraw up to N5 million and corporates N10 million once per month. The move comes as the apex bank seeks to modernize cash management and reduce the risks associated with large-scale cash handling.
In a circular issued on December 2, 2025, Dr. Rita I. Sike, Director of the Financial Policy & Regulation Department, explained that previous cash policies were introduced to respond to evolving economic conditions. “With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,” the CBN stated, emphasizing its commitment to encourage electronic payment adoption and curb money laundering risks.
Under the new rules, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities are limited to N5 million. Withdrawals above these thresholds will attract fees of 3% for individuals and 5% for corporates, shared between the CBN and financial institutions. Daily ATM withdrawals are capped at N100,000, with a weekly maximum of N500,000, and all withdrawals now count toward the weekly limit. The over-the-counter encashment limit for third-party cheques remains N100,000.
The CBN also outlined compliance and reporting requirements for Deposit Money Banks. Banks must submit monthly reports on withdrawals and deposits exceeding the new limits and maintain separate accounts for processing charges collected on excess withdrawals. Exemptions apply to federal, state, and local government accounts, as well as accounts of microfinance and primary mortgage banks, but previous exemptions for embassies, diplomatic missions, and aid-donor agencies have been removed.
These changes are part of broader efforts by the CBN to enhance financial integrity, reduce cash dependence, and streamline payment systems in Nigeria. In line with earlier directives, POS agent transactions remain capped at N1.2 million daily, while individual customers using POS are limited to N100,000 per day. The central bank stresses that these measures aim to protect consumers, strengthen security, and encourage electronic financial transactions across the country.
source: Nairametrics