CBN Tightens Cash-Withdrawal Rules: Here's What We Know About It

When the Central Bank of Nigeria (CBN) released its new circular revising cash-withdrawal limits, it immediately reignited conversations across markets and online platforms. For many Nigerians, the announcement felt like a familiar push toward a cashless future—only this time, the intention is more direct: cash is losing priority, and digital transactions are being positioned as the new norm.

Under the updated rules, individuals can now withdraw up to ₦500,000 per week, while corporate entities can withdraw ₦5 million. Anything above these limits attracts a 3% charge for individuals and 5% for companies. Daily ATM withdrawals remain capped at ₦100,000. However, in a notable shift, the CBN has removed all restrictions on cash deposits, allowing people and businesses to bank any amount without penalty.

The broader message is clear: withdrawing large sums of cash is being made gradually more expensive, while depositing and transacting electronically is being made easier. The CBN argues that the cost and risk associated with managing physical cash have become excessive, and that digital channels offer safer, more efficient alternatives.

This policy fits into Nigeria’s ongoing transition toward a digital economy. Mobile banking, USSD transfers, fintech wallets, and POS payments have surged in recent years, and the CBN appears determined to speed up that momentum.

But the reality on the ground complicates things. Cash remains essential in many parts of the country, especially within the informal sector, where banking penetration is low and digital reliability is inconsistent. For traders, transport operators, and small businesses, withdrawing more than ₦500,000 in a week is often necessary for bulk buying and restocking. Network failures, limited POS coverage, and concerns over failed or reversed transactions continue to undermine trust in digital platforms.

This tension highlights the central challenge of Nigeria’s cashless drive: the ambition to modernise the financial system versus the everyday realities of a population still heavily dependent on physical cash.

The CBN’s revised rules signal progress toward a more transparent and technology-driven financial ecosystem, one that could reduce illegal cash flows and improve oversight. But without substantial improvements in digital infrastructure, consumer protection, and financial literacy, the policy risks excluding the very groups most reliant on cash.

Nigeria is at a critical point in its financial evolution. The shift toward a cashless economy is underway. Whether it succeeds will depend on how well the systems and citizens are supported through the transition.