CBN Raises Daily ATM Withdrawal Limit to N100,000 in Fresh Policy Review

The Central Bank of Nigeria (CBN) has announced a significant upward review of cash withdrawal limits, setting daily ATM withdrawals at N100,000 and increasing weekly limits to N500,000 for individuals and N5 million for corporate entities. The policy update, disclosed in a circular on Tuesday, marks a further adjustment in the apex bank’s efforts to balance cash-based transactions with ongoing financial system reforms.

Policy Update and New Withdrawal Structure

The CBN said the revised cash withdrawal limits apply across all transaction channels, including ATMs, point-of-sale (PoS) terminals, and over-the-counter (OTC) withdrawals in banks. According to the circular, individuals can now access up to N500,000 in cash weekly without special approval, while corporate bodies may withdraw up to N5 million within the same period.

The bulletin noted that ATM cash-outs are now capped at N100,000 per day and contribute to the total weekly withdrawal ceiling. The apex bank explained that the policy update follows stakeholder feedback and an assessment of economic realities, including the need to support legitimate cash-based transactions across the country.

CBN officials said the adjustment aims to improve the efficiency of the cashless policy while ensuring flexibility for individuals and businesses whose operations still require physical cash handling.

Impact on Cashless Policy Implementation

Despite Nigeria’s gradual transition into a more digital financial ecosystem, the CBN acknowledged that several sectors—particularly in rural and semi-urban communities—continue to rely heavily on cash. The revised limits seek to strike a balance between driving financial inclusion and preventing excessive cash circulation that could undermine monetary stability.

Analysts note that the policy update may ease pressure on small businesses and households, many of whom have struggled with low withdrawal ceilings, especially during peak transaction periods. However, financial experts also emphasize that the continued expansion of digital payment infrastructure remains crucial to reducing reliance on cash.

The apex bank reaffirmed its commitment to encouraging digital transactions, noting that the revised policy does not reverse the broader goals of the cashless programme but aligns them with current realities.

Reactions and Expectations

Early reactions from the banking sector indicate that financial institutions are already adjusting their systems to align with the new thresholds. PoS operators, who form a critical part of Nigeria’s informal financial sector, have welcomed the policy but say they expect further clarity on charges for exceeding the new limits.

Economists predict that while the decision will offer immediate relief to cash-dependent consumers, it could also place added demand on banks during high-volume days. They advise customers to continue adopting digital options to reduce transaction delays.

The CBN said further guidelines may be issued as implementation progresses and urged banks, businesses, and consumers to ensure compliance.