In a move that’s stirring debate across the country, Central Bank of Nigeria (CBN) has announced new rules on cash withdrawals, starting January 1, 2026. The policy limits how much individuals and businesses can withdraw from banks ₦500,000 per week for individuals, and ₦5,000,000 per week for corporates. Withdrawals above the cap will attract a fee: 3% for individuals, 5% for companies.
This push is part of a broader drive to curb money laundering, improve trackability of large transactions, and accelerate Nigeria’s shift toward a more cashless, digital‑friendly economy. The bank is also scrapping previous exemptions for embassies and donor agencies, though government revenue accounts and select financial institutions remain exempt.
Supporters regard this as a bold but essential step. Informal cash transactions have historically contributed to corruption, tax evasion, and untraceable money flows. The CBN seeks to promote openness and accountability in the financial sector by placing concrete limitations on major transactions and requiring mandatory reporting. For businesses, the aim is that digital payments and financial records would assist lenders and regulators in tracing real economic activity, thus increasing access to credit, formal financing, and greater monitoring.
At the same time, critics argue the new limits could be burdensome for many Nigerians — especially traders, small business owners, artisans, and informal workers who rely heavily on cash for daily operations. For them, withdrawing ₦500,000 may not be enough to buy stock, settle salaries, or pay workers. And in areas where digital banking or mobile‑money penetration is low, the restrictions could force risky workarounds or push some economic activities further underground.
