Nigeria’s Central bank on Wednesday, 3 December, has unveiled a comprehensive overhaul of its cash management framework, introducing tighter withdrawal caps and removing charges on excess deposits as part of a renewed drive to reduce reliance on physical cash.
Beginning 1 January 2026, individuals will be restricted to a maximum weekly withdrawal of 500,000 naira, while corporate entities will be limited to 5 million naira. Withdrawals beyond these ceilings will incur fees of 3% for individuals and 5% for corporates.
The policy forms part of Nigeria’s broader transition towards a cash-light economy, aimed at mitigating security threats, lowering the cost of cash handling and closing loopholes that enable money laundering.
The central bank highlighted that these measures are also aligned with recent improvements in Nigeria’s global financial compliance standing, following the country’s removal from the FATF monitoring list in October.
Under the new regime, previously granted large-withdrawal waivers—including monthly allowances for individuals and corporates as well as exemptions for embassies and donor agencies—have been abolished. Only Government revenue accounts and select financial institutions will retain exemptions. Banks have been directed to report transactions exceeding the new thresholds and to maintain separate accounting records for all related charges.