The Central Bank of Nigeria (CBN) has released a revised cash withdrawal policy that will come into effect on 1 January 2026. The new rules increase weekly withdrawal limits for individuals and businesses while removing restrictions on cash deposits. However, the policy also introduces withdrawal fees for individuals and corporates who exceed the new caps.
This announcement has generated intense conversations across the financial sector as Nigerians try to understand what the new cash policy means for daily transactions, business operations and digital payments.
For accountants, payroll officers, finance managers, auditors, and SMEs, the new rules have direct implications on cash-flow planning, internal controls, payment processing, audit trails and advisory services. This guide breaks down everything you need to know.
Breakdown of the New CBN Withdrawal Limits for 2026
The CBN has set new limits across all withdrawal channels - including over-the-counter (OTC), ATM, POS, agent banking and cheques.
1. Weekly Withdrawal Limits
Individuals:
- Up to ₦500,000 per week (across all channels)
Corporate accounts:
- Up to ₦5,000,000 per week
2. ATM Withdrawal Rules
- ₦100,000 daily ATM maximum
- Counts towards the weekly ₦500,000 individual limit
3. POS & Agent Banking Withdrawals
- Included in weekly limits
- Large withdrawals now discouraged due to fee penalties
4. Excess Withdrawal Fees
If you withdraw above the weekly thresholds:
- Individuals: 3% fee on the excess amount
- Businesses: 5% fee on the excess amount
These fees are intended to reduce large cash withdrawals and encourage digital alternatives.
5. Cash Deposit Limits Removed
The CBN has scrapped all deposit limits, meaning individuals and businesses can now deposit unlimited cash into their accounts without restrictions.
This is expected to help:
- Market traders
- SMEs
- Businesses that handle significant daily cash inflow
6. What Is No Longer Allowed
- Special approval for large monthly withdrawals
- Exemptions previously granted to specific sectors
- Loopholes that allowed cash-heavy operations to bypass limits
Why the CBN Introduced the New Cash Policy
The new policy aims to modernize Nigeria’s financial system by:
1. Reducing the high cost of cash management
The cost of printing, moving, securing and replacing damaged notes has risen sharply.
2. Curbing money laundering and illicit cash flows
The higher the cash withdrawal, the harder it is to track funds. The new policy supports financial transparency.
3. Protecting customers from cash-related risks
Less cash exposure means reduced theft, robbery and fraud risk.
4. Strengthening digital payments adoption
Transfers, POS payments, mobile banking, USSD, and cards are expected to see higher usage.
5. Improving overall security and auditability
Every digital transaction leaves a trail, making reconciliation and audits easier.
What This Policy Means for Accountants in Nigeria
Accountants play a central role in financial planning and compliance. The new CBN rules directly affect how accountants will manage cash operations, petty cash, payroll, vendor payments and internal controls.
Here are the key implications:
1. Cash-Flow Planning Must Become More Precise
Weekly withdrawal caps mean accountants must:
- Forecast cash requirements accurately
- Plan vendor payments ahead
- Reduce reliance on emergency cash withdrawals
- Advise management on digital alternatives
Poor planning may lead to excess withdrawal fees, which reduce profit margins.
2. Petty Cash Management Must Be Tighter
Cash-dependent businesses will need new petty cash policies.
Accountants should:
- Reduce cash-based expenditure
- Introduce petty cash approval workflows
- Shift more expenses to digital reimbursement
- Track cash in/out with proper documentation
3. More Digital Payroll Processing
Businesses paying salaries in cash will face operational challenges.
Accountants should migrate clients to:
- Bank transfers
- Payroll cards
- Mobile wallets
- Digital salary platforms
This reduces security risks and ensures compliance with withdrawal limits.
4. Vendor Payments Will Need Better Scheduling
Large vendors who insist on cash will create problems. Accountants should:
- Negotiate digital payment terms
- Schedule payments to fit weekly caps
- Avoid exceeding corporate limits
- Educate suppliers about the new policy
Digital vendor payments create better audit trails and reduce fraud.
5. Internal Controls Must Be Updated
Organizations need new rules to manage:
- Cash requests
- Cash advances
- Approval limits
- Reimbursement workflow
- Bookkeeping for digital payments
Accountants should update internal control documentation accordingly.
6. Audit Trails Become Stronger
More digital transactions mean:
- Better accountability
- Clearer audit trails
- Easier year-end reconciliation
- Reduced risk of financial misstatement
Auditors will now have more reliable digital data.
7. Increased Demand for Accountant Advisory Services
This is a major opportunity.
SMEs will need guidance on:
- Cash-flow restructuring
- Transitioning from cash-heavy operations
- Understanding withdrawal fees
- Preventing compliance risks
- Improving digital payment processes
Accountants can monetize advisory services around this policy shift.
Impact on Small and Medium Businesses in Nigeria
The new withdrawal limits will transform how businesses operate.
1. Improved Security
Less cash means:
- Lower theft risk
- Reduced robbery exposure
- Safer operations for staff and owners
2. Higher Dependence on Digital Payments
Businesses may need to invest in:
- POS terminals
- Mobile banking
- Digital accounting tools
- Payment automation
3. Better Record-Keeping
Businesses will need to keep:
- Clear payment receipts
- Proof of transfers
- Audit trails
- Vendor invoices
This aligns with proper bookkeeping standards.
4. May Impact Cash-Heavy Sectors
These sectors must adapt quickly:
- Retail & markets
- Wholesale distribution
- Agriculture
- Transport
- School fee collection
- Hospitality
- Manufacturing
What Accountants Should Advise Clients to Do Now
To stay compliant and avoid fees, accountants should recommend:
✔ Move vendor payments to transfers
✔ Reduce cash withdrawals where possible
✔ Review cash-flow needs weekly
✔ Minimize petty cash-based operations
✔ Use accounting software (like YAPBooks) to track digital payments
✔ Introduce approval workflows for cash requests
✔ Adopt digital salary payments
✔ Train staff on new internal control procedures
These steps reduce the risk of excess charges and make financial management smoother.
Conclusion: A New Era of Cash Management in Nigeria
The CBN’s 2026 cash withdrawal policy marks a significant transition in Nigeria’s financial landscape. For accountants, SMEs and finance managers, this presents both challenges and opportunities.
By embracing digital payments, improving record-keeping, tightening internal controls and adopting modern accounting solutions, businesses can stay compliant and become more financially efficient.
YAP Africa will continue to track this policy and provide practical insights to help professionals stay ahead of financial regulatory changes.
