The Central Bank of Nigeria (CBN) has announced new charges on cash withdrawals that overshoot weekly limits for individuals and businesses. The revised policy, contained in a circular signed by Dr. Rita I. Sike, Director of the Financial Policy & Regulation Department, will take effect on January 1, 2026.
According to the apex bank, these adjustments are designed to reduce the mounting cost of cash management, improve security, and deepen the adoption of electronic payment alternatives nationwide.
New Fee Structure for Exceeding Withdrawal Limits
Under the updated framework, withdrawals above the designated weekly limits will attract the following charges:
- Individuals: 3% fee on withdrawals exceeding N500,000
- Corporates: 5% fee on withdrawals above N5 million
The circular notes that the accumulated charges will be split between the CBN (40%) and the deposit-taking institution (60%).
Unlike previous policies that disallowed withdrawals beyond the cap, customers can now withdraw above the limit, provided they pay the additional fees.
ATM Withdrawal Caps Still in Place
The CBN confirmed that ATM withdrawal limits remain unchanged. Customers can still take out:
- N100,000 per day, and
- Up to N500,000 per week
The earlier provision allowing individuals to withdraw N5 million and corporates N10 million once monthly through special approval has now been removed.
The regulator also authorised banks to load all denominations into ATMs going forward.
Additional Policy Adjustments
Several other cash-handling updates were included in the revised guidelines:
- Third-party cheque encashments remain restricted to N100,000 over the counter.
- Deposit Money Banks (DMBs) must file monthly reports on withdrawals above limits and all cash deposit activities.
- Banks are required to maintain dedicated accounts to track fees collected from excess withdrawals.
- The former cumulative deposit limit and charges on excess deposits have been abolished.
Part of CBN’s Ongoing Financial Sector Reforms
The new cash withdrawal fees come as the CBN intensifies efforts to improve transparency and accountability within the financial system. The announcement follows a draft guideline released earlier in the week on managing Authorised Push Payment (APP) fraud, which proposes a 72-hour reporting window for victims and faster refund timelines for banks.
The apex bank says these measures collectively support its mandate to strengthen Nigeria’s financial system and reduce vulnerabilities associated with a cash-heavy economy and increasing digital fraud risks.
