The Central Bank of Nigeria (CBN) has instructed commercial banks and other financial institutions not to enforce withdrawal limit charges on transactions involving foreign currencies.
This comes as part of clarifications made on its revised cash withdrawal policies, which officially take effect on January 1, 2026.
Under the updated rules, individuals will be restricted to a cumulative cash withdrawal of N500,000 weekly through all channels, including Automated Teller Machines (ATM), Point of Sale (POS) terminals and over-the-counter transactions.
Corporate account holders are allowed withdrawals of up to N5 million weekly. However, the apex bank emphasized that these limits do not apply to withdrawals made in foreign currencies.
CBN’s Director of Financial Policy and Regulation, Dr. Rita I. Sike, explained that the policy is designed to reduce the rising cost of managing cash, increase security around the movement of funds, and address money-laundering risks.
The bank added that while customers using foreign currency accounts can withdraw any amount, withdrawal of naira using foreign cards will still be subject to the set limits.
The CBN also detailed how excess withdrawal charges will apply. For withdrawals beyond stipulated limits, fees will be calculated only on the excess amount.
For instance, an individual withdrawing N700,000 in one week will be charged three percent on the excess N200,000, amounting to N6,000.
The apex bank clarified that these excess fees are non-refundable and require no additional documentation from customers.
Cheques may still be cashed over the counter, but withdrawals above N100,000 must be deposited into an account rather than taken in cash. Corporate cheque transactions fall under similar rules, though corporations can withdraw up to N5 million weekly.
The CBN further directed banks to maintain proper logs, monitor compliance, and submit periodic reports. Government revenue accounts remain exempt, while religious and other organisations are not.
Microfinance and mortgage banks can withdraw cash for operational use, but their customers must comply with all limits. Banks facing cash shortages must seek approval before altering limits.
