What The New CBN Cash Withdrawal Policy Means For Your Money

The Central Bank of Nigeria’s cash withdrawal rules took effect on January 1, 2026. This is the complete guide to the withdrawal limits and fees.

General
Jan 12th, 2026 Anietie Victor

The Central Bank of Nigeria (CBN) has introduced a new set of rules for cash withdrawals that took effect on January 1, 2026. Even though the CBN’s circular was first shared in December 2025, many Nigerians are still figuring out exactly how these changes affect their daily spending and business finances.

If you’ve seen social media posts or tweets about “cash limits” or “new charges” and felt a bit confused, you’re not alone.

By the time you’re done reading this, you’ll know exactly what the new policy means for you, how much you can withdraw, and the simple steps you can take to avoid unnecessary fees.

What’s the 2026 cash withdrawal policy?

In simple terms, the CBN is pushing for a cashless Nigeria. The new policy sets clear weekly limits on how much cash you can take out across ATMs, POS terminals, and over-the-counter (OTC) bank withdrawals combined.

These are the goals of the policy:

  • Lower risks, because cash will be used less frequently and that should help prevent theft and robbery
  • Better tracking, because digital payments make transactions more traceable and accountable
  • Modern banking, because moving money digitally strengthens the Nigerian financial system

A summary of what has changed

  • Weekly cash withdrawal limits are now stricter and clearer
  • There’s a single limit for all withdrawal channels combined
  • If you’ll go above the limit, you’ll pay a fee automatically
  • There are no more special approvals for large, one-time withdrawals
  • Deposit limits have been removed
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What the new policy means for you

The biggest change is the unified weekly limit, which means that all your withdrawals, whether from an ATM, POS, or in banking halls, are now combined into one single weekly total.

How it affects your personal account

You can withdraw up to ₦500,000 in a week. This includes all the ways you get cash:

  • ATM withdrawals
  • POS withdrawals
  • Over-the-counter cash.

For example, if you withdraw ₦100,000 from an ATM on Monday and ₦400,000 at the bank on Thursday, you have hit your withdrawal limit for the week.

How it affects your business account

You can withdraw up to ₦5 million in a week. Just like personal accounts, all channels are combined. Once your business reaches the ₦5 million limit in a single week, you’ll be charged for any other withdrawal you make.

Specific ATM withdrawal rules to remember

  • You can withdraw up to ₦100,000 per day
  • You can withdraw up to ₦500,000
  • ATM withdrawals count toward your overall weekly limit.

A note about cheques: You can still cash third-party cheques of up to ₦100,000 at banking halls. This will count towards your weekly withdrawal limit.

What happens if you exceed the limit?

You can withdraw more than the weekly limit but it’ll cost you some money. These fees apply automatically to the amount you withdraw over your limit:

  • For individuals – 3% of the excess amount
  • For businesses – 5% of the excess amount

For example, if you withdraw ₦600,000 (₦100,000 over the limit) as an individual, you’ll be charged 3% of ₦100,000, which is ₦3,000.

And if, for example, you withdraw ₦6,000,000 (₦1,000,000 over the limit) as a business, you’ll be charged 5% fee of ₦1,000,000, which is ₦50,000.

These fees are automatic and unavoidable. 60% of each fee goes to your bank and 40% to the CBN.

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How to adapt to the new withdrawal policy

To avoid having to withdraw cash or exceeding the new withdrawal limits, you should:

  • Make transfers instead of paying by cash. Transfers don’t count towards your limit.
  • Pay with debit cards whenever you can.
  • Plan your spending every week to help you stay within the ₦500,000 weekly limit.
  • Use alternative payment options like USSD and QR codes.

 

FAQs

1. Are POS withdrawals affected by the new policy?

Yes, POS cash withdrawals count toward your weekly limit.

2. Can I withdraw large amounts for emergencies?

Yes, but you’ll pay a fee if you withdraw above your daily or weekly limit. That fee is 3% of the excess amount for individuals, and 5% for businesses.

3. What’s the best alternative to cash withdrawals in Nigeria today?

Transfers, card payments, and USSD payments.

4. How many times can I withdraw cash in a week?

There’s no limit to the number of times you can withdraw, just the amount.

5. How much can I withdraw from a POS terminal in a day?

You can withdraw up to ₦100,000 daily at a POS terminal. This amount counts toward your total weekly limit of ₦500,000 for individuals or ₦5 million for businesses.

 

Conclusion

The new CBN cash withdrawal policy is clear: cash is still allowed, but it now comes with lower limits and fees if you exceed those limits..

Understanding these rules helps you avoid paying fees, plan your finances better, and make smarter day-to-day payment choices.