New CBN Cash Policy 2026: What Businesses and Individuals Must Know
The Central Bank of Nigeria (CBN) has issued a major update to its cash-related policies, set to take effect on January 1, 2026. Signed by Dr. Rita I. Sike, Director of the Financial Policy & Regulation Department, this revised circular introduces significant changes aimed at reducing cash dependency, enhancing security, and promoting a digital economy.
For business owners, entrepreneurs, and individual account holders, understanding these changes is crucial for financial planning and compliance. Here's a breakdown of what's new and how it impacts you.
How This Policy Differs From the Previous One
The new policy streamlines and updates previous regulations to reflect current economic realities. Key changes include:
No More Deposit Limits/Fees
The cumulative deposit limit and associated fees for excess deposits have been completely removed. This is a major shift from previous restrictions.
Stricter Withdrawal Limits
A cumulative weekly withdrawal limit is now firmly set at ₦500,000 for individuals and ₦5 million for corporates across all channels (ATM, POS, over-the-counter).
End of Special Monthly Withdrawals
The special monthly authorization for individuals (₦5m) and corporates (₦10m) to exceed limits has been discontinued.
Revised Excess Fees
Withdrawals above the weekly limit now attract a 3% fee (individuals) and 5% fee (corporates) on the excess amount, shared between the CBN and your bank.
Exemptions
Revenue generating accounts of Federal, State and local governments and accounts of Microfinance banks, primary mortgage banks with commercial and non-interest banks, are Exempted from the withdrawal ceilings or the excess withdrawal charges
However, embassies and diplomatic missions and aid and donor agencies are no longer exempt from these cash limits.
How Will This Affect Cash Transactions in Nigeria?
The policy directly discourages large-volume cash transactions. The clear weekly caps and attached fees make it more expensive to operate primarily in cash. This will likely accelerate the shift toward electronic payment channels like bank transfers, POS, and mobile money for both everyday purchases and business transactions.
Key Takeaway:
The CBN is actively encouraging a transition to a digital payment ecosystem, making cash transactions less convenient and more costly for large amounts.
Impact on Businesses & Personal Transactions
For Individuals:
- Budgeting is Key: You'll need to plan significant cash needs within the ₦500,000 weekly limit. Exceeding it becomes costly.
- ATM Limits: The daily ATM withdrawal cap is ₦100,000, with a weekly max of ₦500,000.
- Embrace Digital Payments: This policy is a strong push to use cards, transfers, and USSD codes for safety and convenience.
For Businesses (SMEs & Large Corporates):
- Cash Flow Management: Corporates must operate within the ₦5 million weekly cash withdrawal limit. Large payrolls or supplier payments in cash will incur high fees.
- Operational Shift: Businesses are encouraged to digitize payments to suppliers, staff, and for expenses. Investing in POS systems and online payment gateways becomes essential.
- Reporting Requirements: Banks must now report large cash transactions, increasing transparency.
How This Benefits the Nigerian Economy
The CBN's policy aims to deliver long-term economic benefits:
- Reduced Cash Management Costs: Lower physical cash handling reduces operational costs for banks and businesses.
- Increased Financial Inclusion: Driving transactions to electronic channels brings more people into the formal financial system.
- Enhanced Security against Financial Fraud: Less cash in circulation reduces risks associated with robbery, theft, and counterfeiting.
- Curbing Illicit Activities: Tighter limits and monitoring help combat money laundering and other financial crimes.
- Boosting the Digital Economy: This policy is a catalyst for growth in fintech, e-commerce, and a modern, efficient payment ecosystem.
Conclusion
The revised CBN cash policy marks a decisive move towards a less-cash Nigeria. While it presents an adjustment period for individuals and businesses reliant on physical cash, it ultimately encourages efficiency, safety, and digital growth. Proactive adaptation to electronic payment systems will be key to navigating these changes successfully.
Hi Please, Do Not Spam in Comments