The Central Bank of Nigeria (CBN) has clarified that its revised cash withdrawal limit policy will not apply to transactions conducted in foreign currencies, directing banks and other financial institutions to exclude dollar-denominated withdrawals from the new charges.
Under the updated policy, which takes effect on January 1, 2026, individuals will be restricted to a cumulative weekly cash withdrawal of ₦500,000, while corporate account holders may withdraw up to ₦5 million across all channels, including ATMs, POS terminals and over-the-counter transactions.
However, in a circular signed by Dr. Rita I. Sike, Director of the Financial Policy & Regulation Department, the CBN noted that while the limits apply strictly to naira withdrawals—whether through local banks or via foreign cards—there is no cap on foreign currency cash withdrawals.
The apex bank said the policy aims to reduce the rising cost of cash management, strengthen security around cash logistics, and minimise laundering risks.
A detailed “FAQs on Revised Cash-Related Policies” issued over the weekend explained that only naira withdrawals exceeding the weekly threshold will attract processing fees.
To guide customers, the bank gave an example: an individual who withdraws ₦700,000 in one week—₦200,000 above the limit—will be charged 3 per cent on the excess, amounting to ₦6,000.
The CBN directed banks to configure their systems to automatically enforce the limits, monitor compliance and remit applicable fees.
The rules apply to all deposit-taking institutions, including commercial, merchant, non-interest, payment service, microfinance and mortgage banks.
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The guidelines also clarified that excess withdrawal fees are non-refundable, and customers are not required to provide documentation or justification for exceeding the limits—though charges will apply.
Cheque transactions will also fall under the new structure.
While cheques may still be cashed over the counter, withdrawals above ₦100,000 for third-party cheques must be deposited into an account.
Corporate cheques follow the same rules, though corporate entities may still withdraw up to ₦5 million weekly. The CBN further emphasised banks’ reporting obligations, including tracking high-value cash withdrawals, deposits and charges for regulatory review. Institutions must also maintain full logs for audit purposes.
Some exemptions exist. Revenue-generating government accounts are not subject to the limits, but religious organisations and ordinary customers are fully covered. Microfinance and primary mortgage banks are exempt only when sourcing operational cash from correspondent banks—not for customer withdrawals.
The apex bank added that while it does not expect banks to adjust the limits on their own, institutions experiencing temporary cash shortages may reduce withdrawal thresholds, provided they formally report such decisions to the CBN’s Currency Operations Department and their supervisory unit.
