The Central Bank of Nigeria has released a new set of cash withdrawal rules that will take effect on January 1, 2026. Since the circular dropped on December 2, 2025, many Nigerians have been asking the same questions:
How much can I withdraw now? Are there new charges? Will this affect my business? What does this mean for everyday spending?
This guide breaks everything down in clear, practical terms and helps you understand how to navigate the changes without stress.
What Exactly Did the CBN Change?
Good News First:
- No more deposit limits or deposit fees – you can now deposit any amount of cash at no charge. This is actually a positive change that makes banking more accessible.
New Restrictions:
- New cumulative weekly cash withdrawal limits: ₦500,000 for individuals, ₦5 million for businesses
- Withdraw above those limits: pay excess withdrawal fees (3% for individuals, 5% for businesses)
- ATM cap: ₦100,000 per day and ₦500,000 per week
- Third-party cheques above ₦100,000 can no longer be cashed over the counter (though they can still be deposited into your account)
- Banks must report all large withdrawals to CBN monthly
- Fee revenue split: Banks keep 60% of excess withdrawal fees, while CBN takes 40%. This means your bank profits when you exceed withdrawal limits.
- Only government accounts and microfinance institutions are exempt – previous exemptions for embassies, diplomatic missions, and aid donor agencies have been removed
In short: cash withdrawals are now more restricted, and withdrawing above the limits will cost more. However, deposits are now completely free.
Understanding the Historical Context
This isn’t the CBN’s first attempt to manage cash usage. Since 2011, the Central Bank has been pushing Nigeria toward a cashless economy through various policies. This new circular supersedes 19 previous policies (listed in the document’s appendices) and represents the CBN’s most comprehensive effort yet to:
- Reduce the cost of cash management (printing, transporting, and securing physical currency is expensive)
- Address security concerns around large cash movements
- Reduce opportunities for money laundering
- Encourage adoption of digital payment systems
The CBN is not trying to eliminate cash, but it is deliberately making large cash transactions more expensive to shift behaviour toward digital alternatives.
The New Withdrawal Limits, Explained in Plain English
For Individuals
You can withdraw up to ₦500,000 weekly across all channels: ATM, POS, or over the counter.
If you withdraw more than ₦500,000 in one week, you will pay a 3% fee on the excess amount only.
This is a cumulative limit. It doesn’t matter if you withdraw from multiple banks or multiple accounts. The CBN tracks withdrawals per individual across the banking system.
If you withdraw ₦700,000 in one week:
- Allowed: ₦500,000
- Excess: ₦200,000
- Fee: 3% of ₦200,000 = ₦6,000
So you’ll pay ₦6,000 extra just for going above the limit.
For Businesses (Corporate Accounts)
Businesses can withdraw up to ₦5 million weekly.
Withdraw above this amount, and a 5% fee applies to the excess.
If a business withdraws ₦7 million in a week:
- Allowed: ₦5 million
- Excess: ₦2 million
- Fee: 5% of ₦2 million = ₦100,000
About ATM Withdrawals
ATM withdrawals have their own daily limit (₦100,000 per day), but these withdrawals count toward your weekly ₦500,000 total.
So if you withdraw ₦100,000 from an ATM every day for 5 days, you’ve used your entire weekly limit by Friday. Any additional cash withdrawal that week, whether from an ATM, POS, or over the counter, will trigger the 3% excess fee.
What This Means for Your Daily Life
The impact will vary depending on how much you rely on cash. Here’s what to expect:
1. More people will depend on transfers and digital payments
Cash-heavy routines will become more expensive and inconvenient. Bank transfers, mobile money, and POS payments remain free and unlimited.
2. ATM availability may feel tighter
With the new ₦100k daily limit, more people will be queueing or withdrawing multiple times a week, potentially causing longer lines at ATMs.
3. Charges can add up quickly if you rely on frequent cash withdrawals
The new 3–5% excess fee is steep enough to force behaviour change. For context, if you consistently withdraw ₦800,000 weekly as an individual, you’ll pay ₦9,000 in fees every week, that’s ₦468,000 per year just in withdrawal penalties.
4. Small businesses that operate mostly in cash will need to adjust
Especially those that pay salaries, suppliers, or buy inventory with cash. A business that routinely needs ₦10 million in cash weekly will now pay ₦250,000 in fees every week (5% of the ₦5 million excess).
5. Planning becomes more important
Impulsive withdrawals may now come with unexpected charges. You’ll need to think ahead about your cash needs and time your withdrawals strategically.
6. Large one-time expenses require planning
Need ₦2 million cash for a land purchase? You could withdraw ₦500,000 weekly over 4 weeks to avoid fees, or pay the 3% fee (₦45,000) to get it all at once. Sometimes the fee might be worth paying for convenience or urgency.
What Hasn’t Changed (The Good News)
It’s easy to focus on restrictions, but here’s what remains the same or has improved:
- Deposits are now completely free (previously there were deposit limits and fees)
- Bank transfers remain free and unlimited – no restrictions on digital transfers
- POS payments remain unaffected – paying merchants via POS doesn’t count toward withdrawal limits
- Online/mobile banking remains the same – bill payments, subscriptions, and digital transactions are unchanged
- Cash is still legal tender – you can use it for any transaction; you just face limits on withdrawing large amounts
How to Avoid Excess Withdrawal Fees (3–5%)
Here are practical ways to stay within limits and minimise fees:
1. Reduce reliance on physical cash
Use bank transfers, POS, or online payments wherever possible. Most merchants now accept digital payments.
2. Spread your cash withdrawals across weeks
Instead of taking out ₦800,000 at once (which triggers ₦9,000 in fees), withdraw ₦400,000 one week and ₦400,000 the next week. If you can plan, this saves significant money.
3. Use digital wallets or bank transfers for recurring expenses
School fees, rent, subscriptions, utility bills, pay these digitally instead of withdrawing cash to pay them. Most schools, landlords, and service providers now accept transfers.
4. Keep your emergency fund digital
Emergencies often force large, sudden withdrawals, which now attract fees. If your emergency fund is in a savings account or investment that allows quick transfers, you can move money digitally without hitting withdrawal limits.
5. Pay suppliers and vendors via transfer
For businesses, negotiate to pay suppliers through bank transfers rather than cash. This avoids the 5% business withdrawal fee and creates better accounting records.
6. Consider splitting payment methods
If you need ₦1 million for a transaction, you might withdraw ₦500,000 (avoiding fees) and arrange a bank transfer for the remaining ₦500,000.
7. Understand that splitting across accounts doesn’t help
The CBN tracks withdrawals per individual across all banks. Withdrawing ₦300,000 from Bank A and ₦300,000 from Bank B in the same week still totals ₦600,000, triggering fees on the ₦100,000 excess.
How Digital Financial Tools Can Help
With the new CBN rules, managing money digitally becomes essential. Digital financial tools can help you:
- Organise spending money digitally: Hold daily funds in digital wallets or savings accounts
- Plan big expenses: Set money aside gradually for major commitments
- Automate cash flow: Schedule regular savings to avoid last-minute withdrawals
- Rely less on ATMs: Keep money accessible digitally without hitting withdrawal caps
Build better habits: Nigeria is shifting toward digital finance; adapting early helps avoid
What Nigerians Should Expect Going Forward
- Cash will continue to be available, but controlled: You can still use cash; you just face limits on large withdrawals.
- Digital payments will keep growing: They’re the cheaper, easier alternative for most transactions.
- Businesses and individuals who adjust early will avoid unnecessary fees: Those who resist change will pay thousands or even millions in excess withdrawal fees.
- Financial planning will matter more than ever: Knowing your cash needs in advance and timing withdrawals strategically becomes crucial.
- Tools that help you manage money digitally will become essential: Whether it’s your bank’s mobile app, a digital wallet, or investment platforms, comfort with digital money management is no longer optional.
Nigeria isn’t eliminating cash, but the direction is clear: using large amounts of cash will now come with limits and, often, extra costs.
Frequently Asked Questions
No. Cash remains legal tender and will continue to be available. However, the CBN is deliberately making large cash transactions more expensive to encourage digital payments, which are cheaper to manage, more transparent, and harder to use for money laundering. This is part of a global trend toward cashless economies.
Yes, but you will pay a 3% fee on the amount above ₦500k. There’s no absolute prohibition; it just becomes more expensive. If you need the cash urgently, you can get it, but it will cost you.
Yes. ATM, POS cash back, and over-the-counter withdrawals all count toward your weekly ₦500,000 limit. The ATM has a separate daily limit (₦100,000), but those daily withdrawals accumulate toward your weekly limit.
Yes, but they must pay a 5% excess withdrawal fee on amounts above ₦5 million. For a business regularly withdrawing ₦10 million weekly, that’s ₦250,000 in fees every week, or ₦13 million per year.
No. The CBN has removed all deposit fees. You can deposit any amount of cash at no charge. This is actually good news and makes the banking system more accessible for depositors.
It doesn’t matter. The CBN tracks withdrawals per individual (or per business) across the entire banking system. Withdrawing ₦300,000 from three different banks in one week totals ₦900,000, triggering fees on the ₦400,000 excess
Final Thoughts
You don’t need to panic. You only need to understand the new rules and adjust your habits accordingly.
As Nigeria continues its shift toward digital payments, planning your money, not just spending it, becomes even more important. The most successful individuals and businesses will be those who embrace digital financial tools early, plan their cash needs strategically, and view these changes as an opportunity to build better financial habits.
The policy is designed to make cash more expensive and digital money more attractive. By understanding how the system works and adapting your behaviour, you can minimise fees, reduce your reliance on physical cash, and position yourself for success in Nigeria’s evolving financial landscape.
For those who plan, this transition can be smooth and even beneficial. For those who resist, the fees will add up quickly. The choice is yours.
