CBN Announces New Cash Withdrawal Limits Effective January 1, 2026 – Full Details & What Has Changed
The Central Bank of Nigeria (CBN) on 2nd December 2025, released a new circular revising the nationwide cash withdrawal limits. These new rules will take effect from January 1, 2026 and replace the previous cash management policy that was introduced in December 2022.
Below is everything you need to know – the new limits, penalties, what has changed, and what it means for individuals and businesses.
New Weekly Cash Withdrawal Limits (Starting Jan 1, 2026)
| Category | Limit | Penalty for Excess | Penalty Fee Sharing |
|---|---|---|---|
| Individuals | ₦500,000 per week (total from all banks & channels) | 3% fee on the excess amount | Fees shared 40% to CBN and 60% to the bank. |
| Companies | ₦5 million per week (total from all banks & channels) | 5% fee on the excess amount | Fees shared 40% to CBN and 60% to the bank. |
| ATM Withdrawals | ₦100,000 per day (max ₦500,000 per week) | Counts toward weekly limit (no separate penalty, but excess overall triggers the above fees) | Applies to all customers; daily cap is per customer. |
Important Notes:
- The weekly limit is cumulative – it includes cash withdrawn over the counter, ATM, PoS, third-party cheques, and any other channel from all your bank accounts combined.
- The penalty fee is shared: 40% goes to CBN revenue, 60% retained by the bank.
- Over-the-counter cashing of third-party cheques is still capped at ₦100,000 per cheque and counts toward your weekly limit.
What Has Actually Changed? (2022 Rules vs 2026 Rules)
| Item | Old Rule (2022–2025) | New Rule (From Jan 1, 2026) | Key Change |
|---|---|---|---|
| Individual weekly limit | ₦100,000 | ₦500,000 | 5× increase |
| Corporate weekly limit | ₦500,000 | ₦5,000,000 | 10× increase |
| Penalty on excess (individuals) | 2%–10% (tiered) | Flat 3% | Simpler & generally lower |
| Penalty on excess (corporates) | 5%–15% (tiered) | Flat 5% | Simpler & lower in most cases |
| Cash deposit limits/fees | Yes (3%–10% on large deposits) | Completely removed | You can now deposit any amount for free |
| Special monthly approval for large withdrawals | Allowed (₦5M indiv., ₦10M corp.) | Removed – no more special approvals | Stricter in practice for very large cash needs |
| Embassy/donor agency exemptions | Fully exempt | Exemption removed | Now subject to the same limits |
| Government revenue accounts | Exempt | Still exempt | No change |
According to the circular, the review was done to:
- Reflect current economic realities and inflation since 2022
- Promote the cashless policy while allowing reasonable access to cash
- Reduce the high cost of cash management for banks
- Enhance security and curb money laundering risks
- Remove unnecessary restrictions on deposits to encourage banking
What This Means for You
For Individuals
- You now have 5 times more weekly cash access than before (₦500k now vs ₦100k before).
- Plan big cash expenses within the ₦500k weekly ceiling or switch to transfers/cheques.
For Businesses
- Much higher operational cash flow (₦5 million/week) – great relief for SMEs and traders.
- Cash deposits are now unlimited and free – a major boost for cash-intensive businesses.
For Everyone
- Use digital channels (transfers, cards, mobile apps) for amounts above the weekly limits to avoid penalties completely.
- Don’t fall for avoidable charges, plan your cash needs wisely, and embrace digital payments where possible – the future is cashless Nigeria!
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