The Central Bank of Nigeria has introduced a new cash management framework that reshapes how people and businesses withdraw and deposit cash. The policy takes effect in January 2026. Individuals can now withdraw up to โฆ500,000 per week across all channels. Corporate customers can withdraw up to โฆ5 million within the same period. ATM withdrawals remain capped at โฆ100,000 per day and count toward the weekly limit.
At the same time, the central bank has removed all caps on cash deposits. Anyone can now deposit any amount of naira without approval or extra fees. The regulator has also scrapped the old system that required banks to clear large withdrawals manually.
However, the policy introduces new charges for anyone who goes above the weekly allowance. Individuals will pay a 3 percent fee. Corporates will pay a 5 percent fee. CBN says banks must record these charges clearly and remit a portion to the regulator. Foreign embassies and donor agencies no longer hold special exemptions. Government bodies, microfinance banks and primary mortgage banks remain outside the limits.
Why The Policy Marks A Shift In Nigeriaโs Cash Strategy
This move signals a change in how Nigeria wants people to use and manage cash. Regulators say the revisions reflect current economic realities and the high cost of processing physical currency. Removing deposit limits may help banks recover more liquidity and make it easier for informal businesses to document their earnings. Meanwhile, tighter control on withdrawals is meant to reduce money laundering risks and encourage more use of digital channels.
In an official notice published this week, the central bank said the framework was designed to โpromote efficiency and strengthen the integrity of the financial system.โ The message is clear. The regulator wants a cash-lite system that still gives room for genuine cash needs without creating loopholes.
Who Will Feel The Impact First
Everyday customers will need to plan their weekly withdrawals more carefully because large one-off cash transactions now attract charges. Small businesses that still rely heavily on cash may adjust payroll schedules and supplier payments to avoid extra fees. Banks will also have work to do. They must update their internal systems, track the new limits and report all excess charges to the central bank.
What Comes Next As The Framework Takes Effect
The policy becomes active in January. Banks will start customer sensitisation and roll out new compliance procedures. CBN says it will monitor adoption closely and may adjust parts of the framework based on feedback from financial institutions and users.
The early months will reveal how Nigerians adapt to a system that encourages deposits, restricts large cash withdrawals and leans more heavily on digital payments.
