CBN Implements a 3% Fee on Weekly Withdrawals Over N500,000 and a 5% Fee for Amounts Exceeding N5 Million

The Central Bank of Nigeria (CBN) is rolling out a new charge on weekly withdrawal amounts that go beyond certain limits, starting January 1, 2026. Basically, if individuals withdraw more than N500,000 in total per week, they’ll pay a 3% fee on the excess amount. For businesses, the fee kicks in at 5% when their withdrawals go beyond N5 million weekly.

This update comes from a circular signed by Dr. Rita I. Sike, the Director of the Financial Policy & Regulation Department at the CBN. The bank explained that the changes are meant to help control the growing cost of handling cash. It’s not the first time the CBN is introducing rules like this. Previously, they put limits on cash withdrawals and deposits to improve security and fight money laundering, since Nigeria’s economy still relies heavily on cash. Another goal was to encourage people to use electronic payment systems more.

Over time, the CBN realized these policies needed tweaking to better fit how things work today. As they put it, “the effluxion of time” means the rules had to be updated to reflect current realities.

CBN implements fee on weekly withdrawals

So, under the new rules, if you’re an individual and you withdraw more than N500,000 in a week, you’ll be charged 3% on the amount above that. For companies, the fee is 5% on withdrawals exceeding N5 million in a week. Of the fees collected, 40% goes to the CBN, while 60% stays with your bank or financial institution.

Before this change, there wasn’t a fee if you withdrew more than the set limits, you just couldn’t take out more than the amount without restrictions. Now, the fee lets people and businesses go beyond those numbers if they want, but they’ll have to pay for it. However, the withdrawal limits on ATMs remain the same, individuals can still only take out up to N100,000 per day, and up to N500,000 per week from their ATM cards.

There are a few other updates too. The special permission that used to allow individuals to withdraw N5 million once a month (and corporates up to N10 million) is no longer available. Also, all currency denominations can now be loaded into ATMs, which is new. For third-party cheques, the limit for cashing over the counter remains at N100,000.

Deposit Money Banks now have to send monthly reports on cash withdrawals and deposits that go above the limits to the relevant supervisors. The CBN also got rid of rules on cumulative deposit limits and fees for excess deposits altogether. Banks are required to keep the fees collected from these excess withdrawal charges in separate accounts specifically set up for processing those charges.

This latest move by the CBN to implement a fee on weekly withdrawals is part of a bigger plan to reform and regulate Nigeria’s financial sector, pushing for more transparency, accountability, and careful management.

Additionally, the CBN has introduced guidelines to protect people from Authorised Push Payment (APP) fraud, a growing issue. Victims now have 72 hours to report fraud cases, and banks must investigate and return funds within a certain deadline. This is another way the bank is trying to keep Nigeria’s financial system sound and secure.

So, the CBN implements a fee on weekly withdrawals over certain limits not just to manage cash better but also to encourage safer and smarter ways of handling money in Nigeria.
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