Nigeria’s Central Bank has announced sweeping changes to cash withdrawal rules that will take effect on January 1, 2026, marking a decisive step toward a cash‑lite economy. The new policy sets strict limits for both individuals and businesses, introduces new fees for excess withdrawals, and signals a stronger push toward electronic payments.
Under the revised framework, individuals will be allowed to withdraw a maximum of ₦500,000 per week across all banks and channels. Any amount above this threshold will attract a 3 percent processing fee. For businesses, the weekly limit has been set at ₦5 million, with a 5 percent fee applied to withdrawals beyond that ceiling.
The Central Bank also capped daily ATM withdrawals at ₦100,000 nationwide, a significant reduction from previous limits. Point‑of‑sale (POS) transactions are subject to the same weekly thresholds, ensuring uniformity across cash access points.
Officials say the policy is designed to reduce the high costs of cash management, curb money laundering risks, and encourage Nigerians to embrace digital payment systems. “Handling physical currency is expensive and unsustainable,” the CBN noted in its circular, adding that electronic channels offer greater transparency and security.
For businesses, the changes represent a major shift. The previous allowance for corporate entities to withdraw up to ₦10 million monthly with special approval has been discontinued. Companies in cash‑heavy sectors such as retail, transport, and informal trade will need to adapt quickly or face steep fees.
Critics warn that the policy could disproportionately affect rural communities and small enterprises that rely heavily on cash transactions. Limited access to banking infrastructure and digital platforms in remote areas may leave some Nigerians excluded from the financial system.
Supporters argue that the move is necessary to modernize Nigeria’s economy and align with global best practices. Countries such as India and Kenya have implemented similar restrictions, forcing businesses and individuals to adopt electronic payments. Over time, these measures have reduced illicit financial flows and strengthened financial inclusion.
The CBN insists that exemptions will apply to certain government accounts, but businesses and individuals are expected to comply fully. Banks have been instructed to educate customers on the new rules and provide support for transitioning to digital alternatives, including mobile money and the eNaira.
Analysts say the policy could accelerate Nigeria’s transition to a cash‑lite economy, but warn that its success will depend on infrastructure readiness. Expanding internet access, improving mobile payment reliability, and ensuring cybersecurity will be critical to avoid disruptions.
As January approaches, Nigerians are bracing for the impact of the new rules. For individuals, exceeding ₦500,000 in weekly withdrawals will come at a cost. For businesses, the ₦5 million cap represents a new financial reality. International observers will be watching closely to see whether Nigeria’s bold experiment in curbing cash reliance strengthens its economy or deepens inequality.
