CBN Sets Fresh Cash Withdrawal Limits Effective January 2026

For months now, conversations around cash limits in Nigeria have been filled with anxiety, assumptions, and plenty of half-truths. The Central Bank of Nigeria’s new withdrawal rules, set to take effect on January 1, 2026, have added fresh urgency to that discussion. But behind the headlines and the noise is a story about how our financial system is changing—and what that means for ordinary Nigerians, businesses, and the entire cash-driven economy.

At its core, this policy marks the end of a long-standing exception that allowed individuals to pull out up to N5 million and businesses N10 million once a month. That special permission is gone. And with it, Nigeria is entering a stricter era of cash management.

The new limits are clear: individuals can withdraw up to N500,000 weekly, and businesses up to N5 million weekly—across all channels combined. There is no monthly “one-time” waiver anymore. ATM withdrawals are capped at N100,000 per day and count toward the weekly total. Withdraw more than the limit, and you’ll pay for it: 3 percent extra for individuals, 5 percent for companies. These fees aren’t fines; they’re part of the CBN’s attempt to discourage heavy cash use while sharing revenue between banks and the regulator.

When you look closely at the circular that confirmed this change—signed December 2, 2025, by Ms Rita I. Sike—it becomes obvious that the bank is trying to correct something bigger than just high cash withdrawals. Nigeria’s dependence on physical money has been costly: high security expenses, difficulty tracking illicit activity, inefficient logistics, and unnecessary pressure on banks. The CBN openly admits that its cash policies have evolved over time, and that this new step is meant to “reflect present-day realities.” This is not just a limit; it’s a strategic push toward a more digital financial culture.

One detail many people may overlook is the return of uniform ATM loading. Banks can now load all denominations again, which is a relief for those who have struggled with machines stocked only with N100 or N500 notes. Yet, over-the-counter third-party cheques are still capped at N100,000 per withdrawal and will now count toward the weekly total as well.

Not every account is treated the same. Government revenue accounts and institutions like microfinance and mortgage banks remain exempt from these limits. Diplomatic missions and donor agencies, however, are no longer exempt, which signals that the CBN wants transparency and consistency across the board.

This new directive also fits into a broader picture. Just in October, the CBN released another circular requiring banks to submit detailed monthly data on POS transactions, including how much money agents handle and the type of transactions they process. It also imposed clear limits: POS agents can do up to N1.2 million daily, while individual customers can transact up to N100,000. All these reforms point in the same direction—tighter oversight, reduced loopholes, and a more traceable financial ecosystem.

From where I stand, having seen how Nigerians adapt to regulatory shifts, one thing is certain: this change will require adjustment, not panic. Markets will grumble at first. POS agents will rethink their operations. Small businesses that run largely on cash will feel the squeeze. But many will shift toward digital options, not because the government simply wants it, but because the cost of staying cash-heavy will keep rising.

What Nigerians Are Asking Right Now

People want practical clarity, not theory. These are the real questions I’ve seen over and over:

– Can I still withdraw more than the limit if I really need to?
Yes, but you’ll pay the extra percentage charge.

– Do ATM limits count toward my weekly limit?
Yes, they do.

– Can businesses still take out large sums for operations?
Only up to N5 million weekly without penalties.

– Is this the same as the 2022 cash limit?
No. This is more unified, stricter, and ends the old monthly special approval.

Expert Perspective

Financial analysts have said for years that Nigeria cannot run a modern banking system on a 90-percent cash-based economy. These new rules are not accidental; they’re part of a long-term plan to push digital adoption, reduce money laundering, and bring more transactions into the formal financial net. Whether the policy succeeds depends on something the CBN cannot fully control—how fast payment infrastructure improves. Limits alone cannot drive adoption; reliability must match.

A Simple Takeaway

If your personal or business cash flow depends heavily on large withdrawals, this is the right time to diversify. Start by shifting a portion of your operations to secure digital channels. Not because the CBN said so, but because the financial environment is changing, and adjusting early is always easier than adjusting late.