Nigeria’s Central Bank has introduced new cash withdrawal rules aimed at reducing cash-based transactions and strengthening the country’s defences against money-laundering and security risks. The directive, issued to banks and other financial institutions, takes effect January 1, 2026.
Under the revised framework, individuals will be restricted to ₦500,000 in cumulative weekly withdrawals, while corporate organisations will be limited to ₦5 million. Withdrawals exceeding these limits will attract 3% fees for individuals and 5% for corporates.
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Push toward a more cash-lite economy
According to the CBN, the move is part of ongoing efforts to reduce the high cost of cash management and limit risks associated with excessive cash handling.
“The measures aim to moderate the rising cost of cash management, address security concerns and reduce the potential for money laundering,” the Bank noted in the circular.
The tightened rules build on Nigeria’s long-running push toward a cashless economy, following several policy adjustments and implementation setbacks over the past decade.
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Special authorisations scrapped
The CBN also ended special approvals that previously allowed monthly withdrawals of ₦5 million for individuals and ₦10 million for corporates. In addition, exemptions granted to embassies and donor agencies have been removed.
However, government revenue accounts and select regulated financial institutions will continue to enjoy exemptions.
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Compliance and reporting obligations strengthened
Banks are now required to report all transactions above the approved limits and maintain separate ledgers for all fees collected under the revised policy.
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Policy update follows FATF delisting
The announcement comes shortly after Nigeria and South Africa were removed from the Financial Action Task Force (FATF) list of countries under enhanced monitoring for illicit financial flows—an important development for both economies.
The CBN says the tightened withdrawal structure will support efforts to sustain compliance and prevent a slide back into high-risk classification.
(Exchange rate: $1 = ₦1,441.57)
