The Central Bank of Nigeria (CBN) has announced a major adjustment to cash-withdrawal rules across the country. This new policy significantly raises the weekly withdrawal limits for both individuals and corporate organisations, aiming to strike a balance between easing cash access and promoting a more digital, transparent financial system.
What Has Changed?
The updated CBN withdrawal limits introduce the following key changes:
Individuals can now withdraw up to ₦500,000 weekly — an increase from the previous ₦100,000 limit.
Corporate organisations can now withdraw up to ₦5,000,000 weekly.
ATM withdrawals are now capped at ₦100,000 daily, which still falls within the weekly ₦500,000 limit.
The special monthly authorization that once allowed individuals and companies to withdraw much larger sums has been discontinued.
Cash deposit limits have been removed, meaning banks will no longer charge fees for depositing amounts above previous caps.
These new rules will officially take effect from January 1, 2026.
Why the CBN Made These Changes
According to the Central Bank, the revised withdrawal limits are intended to address several important issues:
- High cost of managing physical cash
It is expensive for banks and the economy to print, transport, secure, and process cash at the scale Nigeria currently uses it.
- Security concerns
Reducing the amount of cash in circulation helps lower risks of robbery, fraud, and cash-related crime.
- Fighting money laundering
Large cash transactions often provide avenues for illicit financial activities. Tighter limits help improve transparency.
- Encouraging digital payments
The CBN continues to push Nigeria toward a more technologically advanced, less cash-dependent financial ecosystem.
effectivegatecpm.com/f82624f9ce55f318d7fb46669f66d591/invoke.jsHow This Affects Daily Life
For individuals
The increase from ₦100,000 to ₦500,000 weekly gives more flexibility for everyday cash needs such as school fees, emergencies, and larger purchases. However, it still requires planning to avoid hitting the cap too soon.
For businesses
Companies that run cash-heavy operations will need to structure their weekly cash flows more strategically. The ₦5 million limit should offer reasonable room, but exceeding it will incur extra charges.
Excess-withdrawal charges still apply
3% charge for individuals
5% charge for corporate withdrawals
These apply only when the weekly limit is exceeded.
Pros of the New Withdrawal Policy
More realistic cash access for individuals and businesses.
Reduced risk of theft and cash-related crimes.
Encouragement toward digital banking and electronic payments.
Lower cost of cash management for banks and the economy.
Better monitoring of high-value transactions.
Concerns and Possible Downsides
₦500,000 weekly may still be insufficient for some high-expense scenarios.
Cash-dependent individuals, rural residents, and those without internet access may face challenges.
Excess-withdrawal charges may feel punitive for those who genuinely need more cash.
Banks must ensure ATMs are adequately loaded to prevent queues and scarcity.
What Nigerians Should Do Now
Plan your weekly withdrawals to stay within the limits and avoid unnecessary charges.
Use digital payment channels whenever possible—bank apps, USSD, POS, transfers, etc.
Business owners should reassess their cash-flow plans and consider increasing digital transactions.
Avoid last-minute cash needs by withdrawing earlier in the week if possible.
Final Thoughts
The CBN’s decision to increase withdrawal limits marks a new chapter in Nigeria’s evolving financial landscape. While it offers greater flexibility than before, it also continues the push toward a less-cash economy. The success of this policy will depend on how well Nigerians adapt — and how effectively banks support the transition through reliable digital and cash services.
If the goal is to modernize the economy, improve financial transparency, and reduce cash-related risks, these changes could be a meaningful step forward. However, Nigerians will need time, awareness, and reliable banking infrastructure to fully adjust.
