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Effective January 1, 2026, the Central Bank of Nigeria (CBN) implemented a revised cash-handling framework. The goal is clear: reduce the cost of physical cash management and curb money laundering. For business owners, this means your “cash-and-carry” days must evolve into a “digital-first” strategy.
The 2026 Thresholds
In 2026, the cumulative weekly cash withdrawal limit is ₦5,000,000 for corporate entities and ₦500,000 for individuals. Any amount withdrawn above these limits across all channels (ATM, POS, Over-the-counter) triggers a penalty. To manage your liquidity, you must understand reporting requirements for financial transactions.
The Cost of Excess Cash:
- Individual Penalty: 3% charge on any amount above ₦500,000.
- Corporate Penalty: 5% charge on any amount above ₦5,000,000.
- ATM Limits: Daily withdrawals are capped at ₦100,000.
Good News: No More Deposit Fees
While withdrawals are tighter, the CBN has scrapped all cash deposit limits and fees in 2026. You can now deposit any amount of cash into your corporate account for free. This is a huge relief for retailers. However, ensure you have a Tier-3 KYC compliant account to prevent your large deposits from triggering an AML red flag.
Step-by-Step: Managing the 2026 Cash Policy
- Audit Weekly Needs: Calculate your average weekly cash requirement for “petty cash.”
- Transition to Transfers: Pay suppliers and staff via electronic transfer; these are unlimited and free from the withdrawal levy.
- Utilize eNaira: Use the eNaira Speed Wallet for micro-payments to avoid hitting your cash limit.
- Third-Party Cheques: Note that third-party cheques above ₦100,000 can no longer be cashed over the counter; they must be deposited.
Practical Example: The Supermarket Owner
‘Olu’s Mart’ used to withdraw ₦7 million cash weekly to pay local farmers. In January 2026, they faced a ₦100,000 monthly penalty fee (5% of the ₦2m excess). To save ₦1.2 million annually, Olu helped his farmers set up Tier-1 bank accounts and now pays them via transfer, which costs him ₦0 in withdrawal fees.
External Resources
Read the full circular on the Central Bank of Nigeria website. For cash-flow planning tools, check out Cowrywise’s 2026 Business Guides.
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