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Nigeria’s Cashless Policy in 2026: Current CBN Limits, Fees and How to Adapt

Ade Adeniyi

October 13, 2026

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Last updated: 13 October 2026. This article replaces an earlier version that described the old daily limits of ₦500,000 and ₦3,000,000. The CBN changed its cash rules with effect from 1 January 2026, and the figures below reflect the current circular. Banks may apply the rules in slightly different ways, so confirm details with your bank.

Nigeria’s “cashless” policy does not ban cash. It is a set of Central Bank of Nigeria (CBN) rules that make large cash withdrawals more controlled and more costly, to push more payments onto electronic channels, reduce the expense and risk of handling cash and limit money-laundering. The rules have changed several times since the policy began in 2012, and many websites still quote old limits. This guide explains what applies now, how the fees work, who is exempt and how to pay without relying on cash.

What the Current Rules Say

The CBN issued a circular on 2 December 2025, effective 1 January 2026. Its main provisions, as reported by BusinessDay, TechCabal, Nairametrics and a bank’s own summary of the circular, are:

• Cumulative weekly withdrawal limit: ₦500,000 for individuals and ₦5 million for corporates, across all channels. ATM and POS withdrawals count towards it.
• ATM cap: ₦100,000 per customer per day, subject to a maximum of ₦500,000 a week.
• Excess withdrawal fee: withdrawals above the weekly limits attract a fee of 3% of the excess for individuals and 5% for corporates. The fee is shared between the CBN and the banks, reported as 40% and 60%.
• Deposits: the cumulative cash deposit limit is removed, and the fee for excess deposits no longer applies.
• Special authorisation: the arrangement that allowed individuals to withdraw ₦5 million and corporates ₦10 million once a month was ended.
• Over-the-counter cheques: third-party cheques above ₦100,000 are not paid over the counter, and smaller amounts count towards the weekly total.
• Reporting: banks must report withdrawals above the limits and cash deposits to the CBN each month.

How the Fee Works: Two Examples (Hypothetical)

• An individual withdraws ₦700,000 across ATMs, POS and the counter in a week. The excess over ₦500,000 is ₦200,000, so the fee is 3% of ₦200,000, which is ₦6,000.
• A small company withdraws ₦6.2 million in a week. The excess over ₦5 million is ₦1.2 million, so the fee is 5% of that, which is ₦60,000.

Electronic transfers, card payments and mobile payments do not count as cash withdrawals, so they do not add to the total.

What Changed From the Old Rules

The earlier framework, reported as weekly limits of ₦100,000 for individuals and ₦500,000 for corporates, with fees on large cash deposits and a monthly special approval, was widely criticised as too tight for traders and small businesses. In May 2024 the CBN had already suspended processing fees on cash deposits above ₦500,000 for individuals and ₦3 million for corporates for a period. The 2026 framework raises the weekly limits fivefold for individuals and tenfold for corporates, and removes the deposit limits altogether. It is simpler, but it is still a controlled cash regime.

Who Is Exempt?

Government revenue accounts and primary mortgage banks remain exempt from the withdrawal limits and fees, according to reports on the circular. Previous exemptions for embassies, diplomatic missions and aid-donor agencies no longer apply. Check your bank for the exact list of exempt accounts.

POS Agents and the Cash Limits

Under the CBN’s agent banking guidelines of October 2025, customers are limited to ₦100,000 a day in cash-out at an agent, and each agent is limited to ₦1.2 million a day. POS withdrawals count towards your weekly total. Read our guide on how to avoid POS agent fraud.

Why the CBN Pushes Electronic Payments

• Cost: printing, moving, storing and securing cash is expensive for banks and the economy.
• Traceability: electronic payments leave a record, which helps fight fraud, kidnapping ransom payments, vote buying and money laundering.
• Efficiency: transfers and cards are faster for businesses and can reduce theft and robbery risk.

The Challenges

• Access: about 130 million Nigerians remain offline, according to DataReportal, and many traders deal mainly in cash.
• Network failures: failed transfers and reversals frustrate users. Keep receipts and use your bank’s dispute process.
• Fraud: fake alerts, phishing and account takeovers rise with digital use. Read our guides on internet scams and WhatsApp scams.
• Costs: transfer charges and card fees can add up for small traders.

How to Adapt

Individuals

• Plan large cash needs across weeks, and use transfers for big payments.
• Keep a modest amount of cash for markets, transport and emergencies.
• Turn on transaction alerts and protect your PIN and OTP.

Small businesses and traders

• Accept transfers and card payments, and show a clear account name and QR code.
• Check your actual balance before you release goods. Do not rely on screenshots or SMS alone.
• Keep records, because they help with tax and bank loans. See our guides on VAT and registering a business name.

Corporate users

• Use bank transfers and payroll services for salaries and suppliers.
• Budget for the 5% excess fee if you need large cash payouts, and talk to your bank about options.

How the Cashless Policy Evolved

The policy began in 2012 with a pilot in Lagos, where the CBN set limits above which cash handling charges applied, and it has been adjusted repeatedly since. Limits have been raised, lowered, suspended and redesigned in response to cash shortages, the cost of handling cash and the growth of electronic payments. In May 2024, for example, the CBN suspended processing fees on large cash deposits for a period, and the December 2025 circular went further by removing deposit limits entirely from 1 January 2026. Because the rules change, check the date of any article you read, and compare it with the CBN’s own circulars.

Planning for Large Cash Needs

• Rent and school fees: pay by bank transfer and keep the receipt, rather than withdrawing a large sum.
• Traders buying stock: pay suppliers by transfer where possible, and use the weekly limit for small purchases and market costs.
• Events and ceremonies: agree payment methods with vendors early, and avoid carrying large amounts of cash on the day.
• Emergencies: keep a small cash reserve at home, in a safe place, as well as your bank balance.
• Cash-heavy businesses: talk to your bank about business accounts, merchant services and any exemptions or arrangements that may apply.

Staying Safe When You Handle Cash

• Avoid showing large amounts of cash in public, and vary your routes and times if you carry money regularly.
• Count your cash at the bank or ATM, and keep your receipt.
• Be careful of anyone who offers to “help” at an ATM or POS terminal, and never share your PIN.
• Report lost or stolen cards immediately, and turn on transaction alerts.

A Checklist for Small Businesses

• Display a clear account name, QR code or payment link for customers.
• Confirm every transfer in your own banking app before you release goods.
• Reconcile your cash and transfers at the end of each day.
• Keep invoices and receipts, because they support tax filings and loan applications.
• Train staff on fake alerts and customer scams.

Frequently Asked Questions

Is cash still legal tender in Nigeria?

Yes. The policy limits how much you can withdraw before fees apply. It does not ban cash.

What is the weekly cash withdrawal limit?

₦500,000 for individuals and ₦5 million for corporates from 1 January 2026, across all channels, with a 3% or 5% fee on the excess.

Can I still deposit large amounts of cash?

Yes. The CBN removed the cash deposit limit and the fee for excess deposits from 1 January 2026.

Do transfers count towards the limit?

No. Only cash withdrawals, including ATM, POS and counter withdrawals, count.

What is the daily ATM limit?

₦100,000 per customer per day, within the ₦500,000 weekly cap.

Related Guides

• How to avoid POS agent fraud in Nigeria
• Nigeria’s digital economy in 2026
• How to save money in Nigeria in 2026
• Financial literacy checklist for young Nigerian adults

Sources

• BusinessDay: CBN limits weekly withdrawal to N500,000 for individuals, N5 million for corporates
• TechCabal: CBN introduces N500,000 and N5 million weekly withdrawal caps
• Nairametrics: CBN revises cash withdrawal rules effective January 2026
• Keystone Bank: CBN revised cash management policies
• Central Bank of Nigeria: Reforms and initiatives
• Legit.ng: CBN announces new cash withdrawal and deposit rules
• PensionNigeria: CBN announces new cash withdrawal limits effective 1 January 2026
• DataReportal: Digital 2026, internet users pass the 6 billion mark