Central Bank of Nigeria (CBN) has directed commercial banks and other financial institutions not to implement its new cash withdrawal limit policy on dollar transactions or other deals relating to foreign currencies.
Under the revised CBN cash-related policies, individuals are limited to a cumulative weekly cash withdrawal of N500,000 across all channels, including ATMs, POS terminals, and over-the-counter transactions. The policy permits corporate account holders to withdraw up to N5 million per week.
CBN Director, Financial Policy & Regulation Department, Dr. Rita I. Sike, said the new plan would cut the rising cost of cash management, strengthen security around cash movement, and curb money laundering risks.
In a “FAQs Revised Cash-Related Policies” report released at the weekend, the apex bank said there is no limit to foreign currency withdrawals but limit applies to naira withdrawals using a foreign card.
It stated that the policy, which takes effect on January 1, 2026, applies to all deposit taking financial institutions in Nigeria.
When asked if the limits apply to foreign currency withdrawals, the apex bank said: “No, the limits do not apply to foreign currency withdrawals. However, the limit applies to local currency (Naira) withdrawal using a foreign card.”
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Educating bank customers on how the excess withdrawal limits are calculated, the apex bank said: “Fees are calculated as a percentage of the excess over the prescribed limit. For instance, if an individual withdraws a total of N700,000 in a week, the person has exceeded the weekly limit of N500,000 by N200,000. With a processing fee of three per cent, the individual will be charged N6,000 only”.
The CBN directed banks to implement the policies by setting limits in their systems, monitoring compliance, making relevant reports, and collecting fees for withdrawals above the set limits.
It stated that the policies apply to all banks and other financial institutions that accept deposits from customers – commercial, merchant, non-interest, payment service, primary mortgage, and microfinance banks.
It however stated that the apex bank may review the policies periodically to reflect changes in the economy.
Other clarifications by the apex bank include that excess withdrawal fees are non-refundable, customers are not required to submit any documentation or justification when carrying out transactions that exceed the prescribed limits; however, the applicable excess withdrawal charges will apply and that cheque encashment is subject to the same daily and weekly withdrawal limits.
The CBN disclosed that although cheques can be cashed over the counter, but amounts above the limits attract excess withdrawal fees.
Adding that third-party cheques are allowed, it said however stated that there is a limit of N100,000 for cash withdrawal at the counter. So, if anyone presents you with a cheque of an amount higher than N100,000, you will need to pay the cheque into your account, as you will not be able to cash it.
It further clarified that corporate cheques are subject to the same rules as individual cheques issued to third parties but corporates can draw up to N5 million weekly in cash from their bank or other financial institutions.
On banks’ reporting obligations, it said: “Routinely, banks and OFIs have reporting obligations to the CBN and other relevant agencies of government. Such reporting obligations include, but are not limited to, cash withdrawal transactions exceeding the prescribed limits, cash deposits, and processing fees charged.”
The apex bank further directed banks and other financial institutions to maintain detailed logs for audit and other compliance purposes.
It explained that while transactions involving certain government accounts (essentially revenue-generating accounts of federal, state, and local governments) are exempt from these limits, those from religious organisations are not exempt.
While microfinance banks and primary mortgage banks are exempt solely for the purpose of sourcing their operational cash from correspondent banks. However, their customers are not exempt and are subject to the prescribed cash-withdrawal limits. More so, the policies did not make provision for customers to apply for an exemption.
It added: “The CBN does not expect banks/OFIs to alter the prescribed cash withdrawal limits at their discretion. However, in the unlikely event that a bank/OFI does not have sufficient cash available, such a bank may temporarily reduce the prescribed limits and submit a report of such decisions to the Director Currency Operations and Branch Management Department, with a copy to its supervisory department in the CBN”.
