The Central Bank of Nigeria (CBN) has revised its cash deposit and withdrawal limits, effective January 1, 2026, increasing weekly withdrawal thresholds to N500,000 for individuals and N5 million for corporate entities. Daily ATM withdrawals are capped at N100,000, and all ATM and PoS transactions will now count toward the cumulative weekly limits. The CBN also removed cumulative deposit limits and associated penalties, signaling a shift from stricter cash controls introduced in 2022.

The policy aims to reduce cash management costs, enhance security, curb illicit cash flows, and encourage digital payment adoption while reflecting the realities of Nigeria’s cash-intensive economy. Analysts have largely welcomed the move as a pragmatic adjustment. Economist Dr. Salisu Ahmed noted that the new thresholds address operational challenges for households and small businesses, while banking analyst David Omale highlighted the potential liquidity relief amid inflation and supply pressures.

However, some critics argue the changes may not fully address the needs of rural communities and small merchants reliant on cash. Point-of-Sale operators are divided; some anticipate reduced friction with banks and improved customer confidence, while others warn that increased cash availability could slow the shift toward electronic payments.

Security experts have also cautioned that easier access to large sums of cash may heighten risks of theft, fraud, and money laundering if monitoring is insufficient. The CBN’s circular specifies that excess withdrawals will attract fees—3% for individuals and 5% for corporates—with revenues shared between the central bank and financial institutions.

The revised framework represents a balancing act between improving liquidity for citizens and businesses while continuing to promote safer, more efficient digital financial channels.