The revised rules, released through a circular on Tuesday by the Central Bank of Nigeria (CBN), end a previous special authorisation permitting individuals to withdraw N5 million and corporate organisations N10 million once monthly.
The regulatory bank explained that previous cash policies had been introduced over the years in response to evolving circumstances.
However, with time, the need has arisen to streamline these provisions to reflect present-day realities.
According to the circular by CBN’s Director of the Financial Policy and Regulation Department, Dr. Rita I. Sike, the policy is designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.
‘These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels. With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities’, the CBN stated.
Withdrawals above the new thresholds will attract excess fees of 3% for individuals and 5% for corporates, with the charges shared between the CBN and the financial institutions.
Daily withdrawals from Automated Teller Machines (ATMs) will be capped at N100,000 per customer, with a maximum of N500,000 per week. These transactions will count toward the cumulative weekly withdrawal limit.
The CBN also confirmed that all currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at ₦100,000. Such withdrawals will also form part of the weekly withdrawal limit.
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.
They must also create separate accounts to warehouse processing charges collected on excess withdrawals.
Revenue-generating accounts of federal, state, and local governments, as well as accounts of microfinance banks and primary mortgage banks, are exempt from the new withdrawal limits and excess withdrawal fees.
However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.
The CBN clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.
