CBN Waives Dollar Withdrawal Limits — What It Means for Nigerians

 

What Changed: CBN’s New Directive

The Central Bank of Nigeria (CBN) has directed banks and deposit-taking institutions not to apply the newly introduced cash-withdrawal limits to dollar (and other foreign-currency) transactions. 

Under the updated cash-management policy — effective January 1, 2026 — individuals are limited to a weekly withdrawal of ₦500,000 in naira (corporates ₦5 million). Withdrawals beyond these thresholds accrue processing fees. 

But for foreign-currency (e.g., dollar) withdrawals, there is no such weekly cap or fee, effectively waiving the withdrawal-limit rule for foreign-currency users. 

Why the Adjustment Matters

The CBN says the general withdrawal limits (and associated fees) aim to reduce the high cost of cash management, strengthen security of cash movement, and curb money-laundering risks. 

By exempting dollar (foreign currency) withdrawals from these caps, the CBN recognizes that forex-denominated transactions serve a different purpose — often linked to foreign-currency accounts, international trade, remittances or domiciliary transactions — which require flexibility.

This measure ensures those transacting in foreign currency aren’t unfairly constrained by limits designed primarily for naira-denominated cash flows.

What Users Should Know

If you withdraw or transact in naira using ATMs, POS, over-the-counter, or cheque encashments, the weekly cap applies: ₦500,000 for individuals; ₦5 million for corporates. 

Exceeding the cap triggers a processing fee (e.g., 3% on excess for individuals). 

But foreign-currency withdrawals — such as dollars from domiciliary accounts or forex transactions — are exempt from these restrictions under the new directive. 

Government revenue accounts remain exempt; however, diplomatic missions, donor agencies and religious organisations no longer enjoy automatic exemptions for cash withdrawals under naira-related rules. 

What This Means Overall

The waiver helps individuals and businesses dealing in foreign currency — including exporters, importers, diaspora remittance recipients, and foreign-trade operators — avoid liquidity constraints from the new naira withdrawal caps.

It provides clarity and differentiation between naira-cash controls (targeted at limiting cash-flow, curbing money-laundering) and forex transactions (often necessary for international business and remittances).

The policy adjustment underscores CBN’s attempt to balance stricter cash management rules with flexibility for legitimate foreign-currency operations.