New CBN Cash Withdrawal Limits Take Effect Jan 1

Nigerians will face major changes in the way they access cash beginning January 1, 2026, following a sweeping directive issued by the Central Bank of Nigeria (CBN). The new policy the most significant adjustment to cash withdrawal limits in over a decade is set to reshape how citizens, businesses, and financial institutions interact with money.

Under the revised rules, individuals will now be allowed a maximum cash withdrawal of ₦500,000 per week across all banks and channels, including over the counter, ATM, and POS transactions. Companies are permitted ₦5 million per week. Any amount withdrawn above these limits will attract heavy penal fees: 3% for individuals and 5% for corporate account holders.

ATM withdrawals have also been tightened, with the CBN setting a daily limit of ₦100,000 and a weekly cap of ₦500,000. With these adjustments, even account holders with millions in the bank will be unable to withdraw beyond the weekly ceiling without incurring additional costs.

The directive marks a significant departure from the previous regime where individuals could access up to ₦5 million monthly and companies ₦10 million through special authorisation. The CBN has now cancelled that window completely.

According to financial experts, the policy is aimed at reducing Nigeria’s dependence on physical cash, curbing money laundering, strengthening digital financial systems, and lowering the cost of cash management. “The CBN is basically encouraging Nigerians to embrace traceable, digital transactions,” said one analyst. “The age of unmonitored cash movement is coming to an end.”

For many Nigerians, however, the implications are far-reaching. Cash-based businesses including market traders, POS operators, taxi drivers, and small retailers are expected to feel the greatest impact. Others who traditionally rely on large cash withdrawals for rent, bulk purchases, or emergency transactions may also find the new system restrictive.

While some citizens applaud the policy as a necessary step toward financial transparency, others argue that it could strain small businesses that lack access to efficient digital payment systems. “We are still in a country where network can fail for hours,” said a shop owner in Lagos. “If people cannot withdraw enough cash, how will daily transactions run smoothly?”

The CBN, however, maintains that the long-term benefits outweigh the short-term friction. Officials argue that reduced physical cash movement will enhance security, limit fraud, and help formalise large segments of the informal economy.

Under the new structure, all withdrawals exceeding the approved weekly limits will also be reported to the CBN every month effectively expanding the apex bank’s oversight on how money enters and circulates within the economy. Analysts say this new layer of reporting will help trace suspicious financial activities and improve tax compliance.

The policy also affects specific sectors previously granted exemptions. Embassy and donor agency accounts will no longer enjoy unrestricted access to cash withdrawals, while government accounts remain exempt to ensure continuous flow of public revenue.

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Financial literacy advocates are urging Nigerians to adapt quickly by reducing dependence on cash and embracing digital banking tools such as transfers, USSD, and mobile wallets. Businesses are advised to keep proper financial records, separate personal from business accounts, and shift large transactions entirely to digital channels.

Experts also note that the policy may accelerate interest in digital savings and investment instruments such as treasury bills, money market funds, mutual funds, and government bonds.

As January 1 approaches, one thing is clear: the CBN is not merely adjusting withdrawal limits — it is reshaping the financial behaviour of more than 100 million Nigerians. Whether the transition will be smooth or turbulent remains to be seen, but citizens and businesses alike are being urged to prepare for a new era of cash-light economic activity.