CBN Justifies New Withdrawal Limit, Lists Reasons

The Central Bank of Nigeria has come out to justify its new withdrawal limit, listing reasons why the policy reversal.

In the circular signed by the Director, Financial Policy & Regulation Department, Dr. Rita I. Sike, on December 2nd, 2025, the CBN announced new withdrawal limits amidst other policy changes.

It said the policy overhaul on withdrawal limit was necessary citing the following reasons:

1. to reduce the rising cost of cash management,
2. strengthen security around cash movement, and
3. curb money laundering risks in an economy still heavily reliant on physical currency.

Earlier cash policies were introduced to manage changing economic conditions, the latest circular stated, adding that the time had come to adjust those rules to meet current realities.

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By the latest development, the following have been achieved:

1. cumulative cash deposit limit has been fully removed,
2. banks will no longer charge customers fees for deposits exceeding previously set thresholds.
3. The latest policy is expected to encourage more deposits and expand liquidity within the financial system.
4. Also, individuals are limited to a cumulative weekly withdrawal of ₦500,000 across all channels, including ATMs, POS terminals, and over-the-counter transactions. At the same time, corporate account holders may withdraw up to ₦5 million per week.
5. Withdrawals above these limits will attract excess withdrawal fees of 3% for individuals and 5% for corporates, with the charges to be shared between the CBN (40%) and the financial institution (60%).

The CBN equally discontinued the special monthly cash withdrawal waivers of ₦5 million for individuals and ₦10 million for corporates, stating that such exemptions will no longer apply.

“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

“With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,” the CBN said.