Nigeria New Cash Policy 2026: CBN Increases ATM Withdrawal Limit to ₦100,000 Daily – What Nigerians Need to Know
The Central Bank of Nigeria (CBN) has announced a major update to the country’s cash handling policy, set to take effect on January 1, 2026. This new policy introduces changes to daily and weekly withdrawal limits, affecting both individuals and corporate entities. The move aims to streamline cash circulation, encourage digital payments, and reduce security risks associated with cash handling.
Key Changes: ATM and Withdrawal Limits
- Daily ATM withdrawals: Limited to ₦100,000 per person.
- Weekly withdrawals (all channels including ATM, POS, over-the-counter, and cheques): Capped at ₦500,000 for individuals.
- Corporate withdrawals: Weekly cap set at ₦5,000,000.
Previous “special authorizations” for one-time large withdrawals have been abolished.
These measures are part of CBN’s broader efforts to manage cash flow, reduce operational costs, and promote safer financial transactions.
Cash Deposit and Charges
- Cash deposits: There are no longer limits on how much money individuals or companies can deposit.
- Fees for exceeding limits: While deposits are now uncapped, withdrawing more than the set limits will incur charges: 3% for individuals and 5% for corporates on the excess amount.
These adjustments are designed to encourage responsible cash usage while promoting alternative payment channels.
Why CBN Implemented This Policy
CBN’s rationale for the new rules includes:
1. Reducing cash management costs: Handling and transporting physical cash is expensive for banks and businesses.
2. Improving security: Limiting cash circulation reduces risks such as theft, fraud, and money laundering.
3. Encouraging digital payments: By placing limits on cash withdrawals, the policy nudges individuals and businesses toward electronic payment methods.
This policy reflects CBN’s focus on balancing the convenience of cash access with the need for a secure, modern financial system.
What This Means for Nigerians
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Individuals
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People using ATMs and cash frequently should plan withdrawals carefully.
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The weekly limit of ₦500,000 means withdrawing large sums in a single transaction is no longer possible without incurring fees.
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To handle larger expenses, digital payment methods such as POS, bank transfers, and mobile banking are recommended.
Businesses and Corporates
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The weekly ₦5,000,000 cap may limit cash-intensive transactions.
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Companies must plan their cash flow carefully or adopt digital payment solutions to avoid additional charges.
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This policy encourages corporates to transition toward electronic payments, improving efficiency and transparency.
Broader Impact
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The new withdrawal limits may accelerate the adoption of digital payment systems nationwide.
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Areas with limited access to ATMs may face challenges, prompting increased reliance on online and mobile banking solutions.
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Overall, the policy promotes safer, faster, and more efficient financial transactions across Nigeria.
Tips for Adapting to the New Policy
1. Plan Your Withdrawals: Track daily and weekly limits to avoid penalties.
2. Embrace Digital Payments: Use POS, mobile banking, and online transfers for larger transactions.
3. Educate Your Community: Inform friends, family, and employees about the new limits to minimize inconvenience.
4. Monitor Bank Notifications: Banks may provide updates or special guidance on transactions under the new rules.
Conclusion
The CBN’s new policy, limiting daily ATM withdrawals to ₦100,000 and weekly withdrawals to ₦500,000 for individuals / ₦5,000,000 for corporates, signals a significant shift toward a more regulated and digital-friendly financial system in Nigeria. While the policy may require adjustments for cash-dependent individuals and businesses, it ultimately supports greater security, efficiency, and financial inclusion.
By understanding these limits and adapting to digital payment options, Nigerians can navigate the new cash policy effectively and avoid unnecessary fees.
