Nigeria’s Central Bank (CBN) dropped new cash withdrawal rules effective January 1, 2026, that change how Nigerians access their money. The short version: unlimited deposits, but strict withdrawal limits. Individuals get ₦500,000 weekly, businesses get ₦5 million weekly, anything above that gets taxed 3% and 5% respectively.
What Changed: The Good and the Bad
The Good News: All deposit limits removed. You can deposit ₦10 million, ₦100 million, any amount — no fees, no questions asked. The old system charged fees on large deposits; that’s gone.
The Bad News: Cash withdrawals now have strict weekly caps. For individuals, ₦500,000 per week across all channels — ATM, POS, over-the-counter combined. For businesses, ₦5 million per week. Exceed those limits? Pay excess fees: 3% for individuals, 5% for businesses.
How the Math Works
Say you’re an individual who needs ₦800,000 cash this week:
- First ₦500,000: Free (your weekly allowance)
- Remaining ₦300,000: Taxed at 3% = ₦9,000 fee
- Total cost: ₦9,000 to access your own money above the limit
For businesses withdrawing ₦8 million:
- First ₦5 million: Free
- Remaining ₦3 million: Taxed at 5% = ₦150,000 fee
- Total cost: ₦150,000
The fees split 40% to CBN, 60% to your bank. This replaces the 2022-2025 system where individuals needed special authorization and CEO-signed letters to withdraw ₦5-10 million monthly. That exception? Completely abolished.
ATM Limits Still Apply
ATMs have a separate daily cap: ₦100,000 per day, ₦500,000 per week. This counts toward your overall weekly limit. So if you withdraw ₦400,000 from ATMs during the week, you only have ₦100,000 left for POS or over-the-counter withdrawals before hitting the ₦500,000 threshold.
Example Scenario
- Monday: ATM withdrawal ₦100,000
- Wednesday: ATM withdrawal ₦100,000
- Friday: POS withdrawal ₦200,000
- Saturday: Try to withdraw ₦150,000 at bank counter
Total so far: ₦400,000. You have ₦100,000 left fee-free. That Saturday ₦150,000 withdrawal triggers the excess fee on ₦50,000 (3% = ₦1,500 charged).
Why the CBN Did This
The CBN‘s official reasoning: reduce cash management costs (printing, transporting, securing physical currency), address security concerns around large cash movements, and curb money laundering. Nigeria operates one of the most cash-dependent economies globally — over 90% of transactions still use physical naira despite digital payment growth.
As Cowrywise explained, the policy makes cash more expensive and digital money more attractive. By charging fees on large withdrawals, the CBN pushes users toward bank transfers, mobile money, and fintech apps where transactions face no weekly limits.
The Unspoken Reason: Bank Recapitalization
Nigerian banks face a 2026 recapitalization deadline—regulators ordered them to increase capital reserves. By limiting cash outflows, the CBN ensures deposits stay “sticky” inside the banking system, boosting liquidity ratios and helping banks meet regulatory requirements before audits. What the CBN calls “financial stability,” critics call trapping money inside a fragile system.
What This Means for Business Owners
If your business isn’t registered, register it now. The ₦500,000 individual limit applies to personal accounts. To access the ₦5 million weekly business limit, you need a registered company with a corporate bank account. Operating a cash-heavy business (retail, transport, construction) without registration means paying 3% fees constantly — or going fully digital.
How to Minimize Fees
- Register your business: Get CAC registration, open corporate account = ₦5 million weekly instead of ₦500,000
- Use digital payments: Accept transfers, not cash — no withdrawal limits if money never leaves the bank
- Plan withdrawals strategically: Spread large cash needs across multiple weeks rather than one lump sum
- Pay suppliers via transfer: Direct bank payments avoid cash withdrawal fees entirely
Common Questions Answered
Q: Does the ₦500,000 limit apply across all my bank accounts?
A: Yes. It’s cumulative across all banks and all accounts. The CBN tracks total weekly withdrawals per individual via BVN (Bank Verification Number). You can’t withdraw ₦500,000 from GTBank and another ₦500,000 from Access Bank without triggering fees on the second withdrawal.
Q: What if I need emergency cash above the limit?
A: You can still withdraw it—you just pay the 3%/5% fee. There’s no hard block, only financial disincentive.
Q: Do third-party cheques count toward the limit?
A: Yes. The old ₦100,000 cap on cashing third-party cheques over the counter remains, and now counts toward your weekly ₦500,000 total.
Q: Can I deposit cash for someone else to avoid their withdrawal limit?
A: Technically yes (deposits unlimited), but banks flag unusual deposit patterns under anti-money laundering rules. Expect scrutiny if you’re depositing large sums into multiple accounts.
Q: What about digital payments—any limits there?
A: No withdrawal limits on bank transfers, mobile money, or digital wallets. The restrictions only apply to physical cash withdrawals.
How Nigerians Are Reacting
Viral videos and social media explainers (like the one this article references) frame the policy as the CBN taxing access to your own money. As one financial literacy advocate put it: “Coming 2026, cash is no longer going to be free. The era of ‘I need everything cash’ ends this 2025.”
Others argue it’s pragmatic modernization. Nigeria can’t sustain 90% cash usage when digital infrastructure exists. The fees aren’t confiscation—they’re behavior modification. As Cowrywise notes: “The most successful individuals and businesses will be those who embrace digital financial tools early, plan their cash needs strategically, and view these changes as an opportunity to build better financial habits.”
The Trust Problem
Many Nigerians distrust banks after the 2022-2023 naira redesign chaos—ATMs ran dry for months, businesses couldn’t access cash, and the policy nearly collapsed commerce in rural areas. This new framework triggers those memories. Can banks handle the digital transaction volume if everyone shifts away from cash? Will POS networks stay operational under increased load? Will digital payments actually work in areas with poor internet connectivity?
What Happens If You Ignore This
If you continue cash-heavy operations without adapting:
- Weekly ₦1 million cash withdrawals = ₦15,000 monthly in fees (₦180,000 annually)
- Business withdrawing ₦10 million weekly = ₦250,000 monthly in fees (₦3 million annually)
Those aren’t small amounts. For businesses operating on tight margins, 5% withdrawal fees can destroy profitability. The policy forces a choice: go digital or pay continuously.
Tools to Adapt
- Mobile banking apps: GTBank, Access, UBA, Zenith all offer instant transfers with no weekly limits
- Fintech wallets: OPay, PalmPay, Kuda, Moniepoint for customer payments without cash handling
- POS terminals: Accept card payments to avoid cash deposits/withdrawals entirely
- Invoice software: Send payment requests via WhatsApp/email with bank transfer links
Nigeria’s 2026 cash rules are clear: deposit anything, withdraw limited amounts or pay fees. The CBN isn’t eliminating cash: it’s making large cash transactions expensive enough that digital alternatives become the rational choice.
Whether this succeeds depends on infrastructure reliability. If digital payments work seamlessly, fees incentivize modernization. If banks crash, networks fail, or internet access remains spotty, the policy risks repeating 2023’s chaos—trapping money inside a system that can’t deliver it when needed.
For now, the message is simple: register your business if you haven’t, start accepting transfers, and plan cash withdrawals strategically. The era of unlimited cash access ends January 1, 2026. Adapt or pay.
