Nigeria’s central bank announced sweeping changes to its cash management policies on Wednesday, introducing stricter withdrawal limits and removing fees on excess deposits as part of efforts to reduce cash dependency and combat security threats and money laundering.
In a circular issued to banks and financial institutions, the Central Bank of Nigeria (CBN) said the new rules will take effect on January 1, 2026. Under the updated framework, weekly cash withdrawals will be capped at ₦500,000 for individuals and ₦5 million for businesses. Withdrawals exceeding these limits will incur charges of 3% for individuals and 5% for companies, according to CNBC Africa.
The bank emphasized that the measures form part of ongoing efforts to transition the economy toward greater electronic payment adoption, following years of challenges in implementing earlier policies. The goal, it said, is to lower the cost of cash handling, improve security, and reduce opportunities for illicit financial flows.
In October, both Nigeria and South Africa were removed from the Financial Action Task Force’s (FATF) “grey list” of countries under increased monitoring for potential money laundering risks, a development widely seen as a positive signal of improving regulatory oversight.
According to the circular, the CBN has eliminated previously required approvals for large monthly withdrawals of up to ₦5 million for individuals and ₦10 million for businesses, and revoked exemptions previously granted to embassies and donor agencies. Government revenue accounts and select financial institutions, however, will remain exempt.
The central bank also stressed that all withdrawal transactions exceeding the new thresholds must be recorded, with banks required to maintain separate logs of applicable fees to ensure transparency and effective supervision.
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