By: ThinkBusiness Africa
The Central Bank of Nigeria (CBN) has announced a significant revision of its cash-related policies, reintroducing strict cumulative weekly withdrawal limits nationwide while simultaneously removing the long-standing cap on cash deposits.
According to a CBN circular on Tuesday, the new policies are mandatory for all deposit-taking financial institutions and will take effect from January 1, 2026.
The move is the latest, and most aggressive, measure in the apex bank’s ongoing push to limit the amount of physical cash circulating in the economy, a strategy primarily aimed at combating money laundering, terrorism financing, and the high rate of cash hoarding.
withdrawal limits for both individuals and corporate entities across all banking channels, including over-the-counter (OTC) transactions, Automated Teller Machines (ATMs), and Point of Sale (PoS) terminals; has been reduced to N500,000 weekly for individuals, and N500,000,000 weekly for corporate entities
The CBN also imposed tighter restrictions on how these funds can be accessed:
- Maximum cash withdrawal via ATMs is limited to N100,000 per week, subject to a maximum of N20,000 per day. Furthermore, ATMs are to be loaded primarily with denominations of N200 and below.
- Third-Party Cheques: Third-party cheques exceeding N100,000 are no longer eligible for over-the-counter payment.
The Central Bank stated that the tight restrictions are a necessary instrument to enhance the effectiveness of its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) efforts.
The excessive use of cash has long been cited by authorities as a primary facilitator of illicit financial activities, making it difficult for regulatory bodies to trace the origins and destination of large sums of money.
CBN said the move is “part of efforts to moderate the rising cost of cash management, address security concerns, and reduce the potential for money laundering associated with the economy’s heavy reliance on cash.” CBN stated.
While the CBN aims for strict adherence to the new ceilings, it acknowledged that legitimate transactions may occasionally require larger sums. In “compelling circumstances,” such as payments for medical bills, school fees, or major construction work, cash withdrawals above the weekly limit may be permitted.
However, such exceptions are subject to stringent control measures and fees. Withdrawals above the limit will attract a processing fee of 3% for individuals and 5% for corporate entities.
Earlier In October, Nigeria and South Africa, sub-Saharan Africa’s two largest economies, were removed from the global Financial Action Task Force (FATF) list of countries subject to increased monitoring for illicit money flows, after two years on the list.
The revised policy is a significant acceleration of the CBN’s long-standing Cashless Policy, which seeks to reduce the cost of cash management for banks and encourage the use of electronic payment alternatives.
CBN is actively urging the public and corporate bodies to fully embrace digital payment options like mobile banking, internet transfers, and PoS services to ensure smooth transactions.
The rollout is expected to present challenges, particularly for rural areas and the informal sector, which heavily rely on cash. The CBN has pledged to collaborate with financial institutions to improve infrastructure and public awareness, ensuring a smoother transition to a predominantly digital economy.
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