Cashless policy: Key facts about CBN’s new update for merchants
In January 2026, the Central Bank of Nigeria (CBN) has implemented a revised cashless policy, strictly limiting daily and weekly cash withdrawals to encourage the use of electronic transactions.
Contents
CBN’s New Cashless Policy
New cash withdrawal limits
- Weekly cash withdrawal limits changed
- Extra charges on cash above the limit
- ATM and POS withdrawals count
- Digital payments are no longer optional
Individuals are capped at N500,000 per week, while corporate organizations are limited to N3 million; excess amounts incur fees of 3% and 5%.
If you run a shop, manage a supermarket, operate a POS stand, or handle cash for any kind of business in Nigeria, chances are you have already felt the ripple effects of the CBN’s latest directive.
This new cashless policy is not just another circular but a real shift that is already reshaping how money moves across the country.
Daily Hibiscus News breaks down the key facts about the CBN’s new cashless policy update for merchants and outlines the next steps they should take.
CBN’s New Cashless Policy
In December 2025, the CBN rolled out a revised cash management framework aimed at tightening Nigeria’s slow but steady transition into a cash-light economy. The new rules officially kicked in on January 1, 2026, and they apply nationwide.
At its core, the policy introduces strict weekly cash withdrawal limits, scraps special approvals for large withdrawals, and nudges Nigerians, especially merchants, towards digital payment channels.
The CBN said the update was meant to reduce the rising cost of managing physical cash, improve security, curb money laundering risks, and accelerate Nigeria’s shift toward electronic payments, and judging by the fine print, they mean business.
New cash withdrawal limits
At this stage of the CBN’s new cashless policy update, things get practical and, for many businesses, sensitive.
- Weekly cash withdrawal limits changed
In 2024, the Chartered Institute of Taxation of Nigeria (CITN) commended the Central Bank of Nigeria’s (CBN) cashless policy, emphasising its potential to significantly enhance tax collection in the country.
Meanwhile, the new CBN cashless policy, remember individuals can withdraw up to N500,000 while corporate entities can withdraw up to N5 million per week. However, withdrawals above these limits are allowed, but they now attract processing fees. For merchants who still rely heavily on cash, especially for stock purchases or payroll, this is where the policy begins to bite.
- Extra charges on cash above the limit
Excess cash withdrawals attract charges, paid to both banks and regulators. In practical terms, the more you insist on cash beyond the approved threshold, the more expensive it becomes. For small and medium businesses operating on thin margins, these charges can quietly eat into profit.
This is why merchants should rethink cash-heavy operations and explore transfers, POS settlements, and supplier payments via bank channels.
- ATM and POS withdrawals count
Cash collected through ATMs or POS terminals still counts toward your weekly withdrawal cap. So, even if you spread withdrawals across machines, the total is what matters.
For merchants who run multiple cash points, say, a shop and a POS stand, tracking weekly withdrawals is no longer optional.
- Digital payments are no longer optional
POS terminals, bank transfers, USSD payments, and mobile banking are not just conveniences anymore; they are becoming the backbone of daily trade.
According to data from the Nigeria Inter-Bank Settlement System (NIBSS), a report shows steady growth in electronic transactions, especially among urban merchants and service providers. Customers expect to tap, scan, or transfer. Merchants who can not offer that often lose sales, plain and simple.
Sources:
Previous Press Releases by CBN
Nigerian Tribune
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