Nigeria’s financial landscape is set for a significant shift as the Central Bank of Nigeria (CBN) has raised weekly cash withdrawal limits to N500,000 for individuals and N5 million for corporate entities, marking a major policy reversal from earlier cash-control measures.
The new framework, announced in a circular issued this week and effective January 1, 2026, also increases ATM withdrawal limits to N100, 000 daily (capped at N500, 000 weekly) and scraps the long-standing cumulative deposit limit, stating that the fee on excess cash deposits “shall no longer apply.”
The CBN says the updated framework reflects its goal of balancing economic efficiency, financial security, and the evolving realities of Nigeria’s monetary ecosystem—an approach analysts say signals a more flexible and responsive regulatory posture going forward.
According to the circular signed by Rita Sike, Director of the Financial Policy and Regulation Department, the revisions aim to align cash management rules with current economic conditions.
The apex bank said the adjustments are intended to reduce the rising cost of cash logistics, address security concerns associated with large cash movements, minimize money-laundering risks in a cash-heavy economy; encourage higher adoption of electronic payment channels.
The CBN noted that cash policies “issued over the years in response to evolving circumstances” must now be streamlined, citing the “effluxion of time” and the changing dynamics of Nigeria’s payment ecosystem.
Special monthly withdrawal approvals of N5 million (individuals) and N10 million (corporates) were abolished.
Excess cash withdrawals attract: 3 per cent fee (individuals); 5 per cent fee (corporates); Fees shared 40 per cent to CBN, 60 per cent to banks; All currency denominations may now be loaded into ATMs; Third-party cheque encashment limit remains N100,000.
…Middle ground
Economic researcher Dr. Kola Adigun described the new limits as “a middle ground between controlling illicit cash flows and recognizing the realities of a partly informal economy.”
“The previous caps were unrealistic for many legitimate businesses. Raising the limit brings relief while keeping enough structure to monitor large withdrawals,” he said.
Banking consultant Dr. Patrick Nwabueze cautioned that these fees must be clearly regulated to avoid conflict between banks and customers.
“The CBN needs to ensure that banks do not misuse these charges or create additional hurdles for customers,” he said.
However, payments-system expert Oluwaseun Makinde warned that higher withdrawal limits could slow down the momentum gained in digital payments adoption.
“The risk is that people may revert to cash-based transactions. The CBN must simultaneously strengthen digital infrastructure to prevent regression,” she noted.
Small businesses and traders—especially those operating in cash-intensive sectors such as agriculture, retail, and transportation—have welcomed the move.
A Lagos-based SME operator, Bisi Ogunleye, said the previous limits “made routine business operations unnecessarily difficult.”
“We often couldn’t withdraw enough cash for market runs or logistics. This policy gives room to breathe,” she said.
Some financial analysts argue that the 3 per cent and 5 per cent fees on excess cash withdrawals may discourage compliance.
Banking consultant Dr. Patrick Nwabueze noted: “The CBN must provide clear guidance to ensure that the fees don’t become another friction point between banks and customers.”
…Controlling inflation
Reacting to the directive, political economist, Adefolarin Olamilekan, said the move by the Apex Bank is targeted at controlling inflation through monetary policy instruments.
The economist said the directive suggests a soft approach from the tighter monetary stand of the apex bank.
According to him, there would be mixed sentiments for the business community and stakeholders.
He said, “The overall interest is still to control inflation via the monetary angle especially as CBN works to align its monetary policy with that of fiscal policy.”
