The Central Bank of Nigeria (CBN) has directed commercial banks and other financial institutions not to apply the revised cash-withdrawal limit charges on dollar-denominated transactions or other dealings involving foreign currencies.

The directive is contained in the apex bank’s FAQs on Revised Cash-Related Policies issued at the weekend and made available to newsmen.

News reports that under the revised cash-related guidelines, individuals are restricted to a cumulative weekly cash withdrawal limit of N500,000 across all channels, including ATMs, POS terminals and over-the-counter transactions.
Corporate account holders are permitted to withdraw up to N5 million per week.

Dr. Rita I. Sike, Director, Financial Policy and Regulation Department of the CBN, explained that the policy seeks to reduce the rising cost of cash management, enhance security around cash movement and mitigate risks associated with money laundering.

According to the bank, while the new policy becomes effective on Jan. 1, 2026, it applies to all deposit-taking financial institutions, including commercial, merchant, non-interest, payment service, primary mortgage and microfinance banks.

Responding to concerns on whether the limits apply to foreign currency withdrawals, the CBN clarified that:
“No, the limits do not apply to foreign currency withdrawals. However, the limit applies to local currency (naira) withdrawals using a foreign card.”

The bank further explained that processing fees are charged only on excess withdrawals above the prescribed limits. It noted that the fees are calculated as a percentage of the excess amount.

The document added:
“For instance, if an individual withdraws a total of N700,000 in a week, the person has exceeded the weekly limit of N500,000 by N200,000. With a processing fee of three per cent, the individual will be charged N6,000 only.”

The CBN instructed financial institutions to implement the policy by configuring system limits, monitoring compliance, preparing relevant regulatory reports and applying excess-withdrawal fees where necessary.

It added that excess withdrawal fees remain non-refundable, and customers are not required to provide documentation or justification for transactions above the limits, although the applicable charges must be applied.

On cheque processing, the CBN said that although cheques could still be cashed over the counter, any amount above the stipulated limits would attract excess-withdrawal fees.
It also clarified that third-party cheques above N100,000 cannot be cashed and must be deposited into an account.

It stated that the same rules apply to corporate cheques issued to third parties, while corporate entities may withdraw up to N5 million weekly in line with the new limits.

On reporting obligations, the bank said financial institutions must maintain detailed logs for audit and compliance purposes, including reports on cash withdrawals exceeding the prescribed limits, cash deposits and processing fees charged.

The apex bank noted that while certain government revenue-generating accounts are exempt from the limits, religious organisations are not exempt.

It also noted that microfinance and primary mortgage banks are exempt from the limits only for the purpose of sourcing operational cash from their correspondent banks, stressing that their customers remain subject to the withdrawal caps.

The CBN added that the policies would be reviewed periodically in line with economic developments.

It stated that financial institutions are not permitted to vary the prescribed limits at their discretion.
However, in the event of temporary cash shortages, banks may reduce the limits and report such decisions to the Director, Currency Operations and Branch Management Department, with a copy to the supervisory department in the CBN.