CBN introduces 3% fee for weekly withdrawals exceeding N500k, 5% for N5m

The Central Bank of Nigeria (CBN) has introduced an extra charge on weekly cumulative withdrawals for individuals and corporates that exceed the set limits. The revised rule will be effective on January 1, 2026.

According to a circular released on Tuesday and signed by Dr Rita I. Sike, Director, Financial Policy & Regulation Department, the bank regulator noted that the cash-related polices aim to moderate the rising cost of cash management. The regulator said that policies have been introduced previously in response to 

Recall that CBN introduced cash withdrawal and deposit limit policies to address security concerns and reduce the potential for money laundering associated with the economy’s heavy reliance on cash. Also, the policies sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

With the passage of time and the need to align policies with market operations, the CBN is revising its cash-related policies. “The effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,” it said in the circular. 

Revised cash withdrawal rules

According to the circular, excess cash withdrawals that exceed N500,000 weekly for individuals and N5 million for corporates will now attract fees of 3% and 5% respectively. Under the sharing quota, 40% will be allocated to the CBN, and 60% by the bank or financial institution.

Previously, the regulator did not provide for withdrawals exceeding the limits. With the fee implementation, Nigerians can now withdraw outside the threshold. 

However, the withdrawal limits on the Automated Teller Machine (ATM) remain the same. Nigerians are still limited to a N100,000 daily withdrawal (per customer), subject to a maximum of N500,000 weekly.

Also Read: CBN to initiate 72-hour refund rule for bank fraud victim.

Other related revisions 

• The special authorisation for individuals and corporates to withdraw N5 million and N10 million, respectively, once a month, has been discontinued. 
• All currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at N100,000.
• Deposit Money Banks are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments. 
• The cumulative deposit limit and the fee for excess deposit have been discontinued. They must also create separate accounts to warehouse processing charges collected on cash withdrawals above the limits.

The revised policies come amid CBN’s sweeping reforms across the Nigerian financial institution. They are part of its recent move to regulate the financial sector for transparency, accountability and responsible operations. 

In a proposed guideline released on Monday, victims of Authorised Push Payment (APP) fraud would have up to 72 hours to report incidents, after which banks must investigate and issue refunds within a set timeframe.

The policies aim to support its mandate to promote a sound financial system in Nigeria by addressing the rising incidence of Authorised Push Payment fraud.