The Central Bank of Nigeria (CBN) has revised its cash management framework by increasing its weekly withdrawal limits for individuals and corporates while introducing new compliance requirements for the financial system.
The updated policy, effective January 1, 2026, signals a recalibration of the cashless strategy following operational feedback and recent improvements in Nigeria’s anti-money-laundering ratings.
Under the new structure, individuals may withdraw up to ₦500,000 per week, an increase from the previous cap of ₦100,000. Corporate account holders may withdraw up to ₦5 million per week, compared with the former ₦500,000 limit.
Withdrawals that exceed these thresholds will attract surcharges of 3% for individuals and 5% for corporates.
The CBN said the revised thresholds are designed to reduce friction for legitimate cash users while maintaining oversight of large-volume transactions.
The Bank also noted that the revised framework supports its objective of lowering the cost of cash management, improving financial transparency, and reinforcing safeguards against illicit financial activity.
In addition to adjusting withdrawal limits, the CBN has removed restrictions on cash deposits, eliminating the previous ceilings and the associated processing fees. Banks have been directed to accept all deposit volumes without imposing penalties, a measure intended to enhance liquidity and discourage cash hoarding in the informal economy.
The circular also eliminates special authorisations that previously allowed individuals to withdraw up to ₦5 million monthly and corporates up to ₦10 million under exemption.
Diplomatic missions and donor agencies, which were formerly exempt from certain restrictions, have also been brought under the standard rule. Only government revenue accounts and regulated financial institutions will continue to operate under separate treatment due to statutory requirements.
Banks and financial institutions must report all transactions that surpass the withdrawal caps and maintain segregated ledgers for charges collected on excess withdrawals.
The CBN said this requirement strengthens audit trails and ensures that surcharge records remain transparent during regulatory examinations.
Nigeria’s reform push comes after the country, alongside South Africa, was removed from the Financial Action Task Force (FATF) list of jurisdictions under increased monitoring.
The CBN expects that improvements in cash handling controls will support sustained compliance and reduce vulnerabilities associated with high-volume cash transactions.
The updated withdrawal framework forms part of the broader transition toward a digitally driven payment environment. While the new limits offer more flexibility for households and businesses, the surcharge structure is expected to discourage large cash-based operations and push higher-value transactions toward electronic channels.
Banks are now adjusting internal systems to meet the reporting and accounting requirements, while businesses that rely heavily on cash transactions may need to reassess operating models in line with the new cost implications.