Nigeria Introduces Stricter Cash-Withdrawal Caps to Strengthen AML Controls

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The Central Bank of Nigeria (CBN) has introduced significant changes to the country’s cash policies in an attempt to curb money laundering and promote Nigeria’s cashless economy. The reforms include the removal of excess cash deposit fees and the implementation of new limits on weekly cash withdrawals.

The CBN stated:

These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels … The need has arisen to streamline the provisions of these policies to reflect present-day realities.

Under the new rules, due to take effect on January 1, 2026, individuals will be allowed to withdraw a maximum of ₦500,000 (approximately US$345) per week, while corporate entities will be limited to ₦5 million (approximately US$3450). 

Withdrawals above these thresholds will lead to surcharges of 3% for individuals and 5% for corporate entities, raising the cost of heavy cash reliance. 

The CBN has expressed concern that untraceable transactions could potentially be used to facilitate fraud, corruption, and money laundering in the country.

Banks will need to file reports on any transactions that exceed the limits and maintain records of all surcharges.

The CBN also abolished earlier special allowances authorizing larger monthly withdrawals and removed exemptions previously granted to embassies and donor organizations. Exemptions remain for some financial institutions and government revenue accounts. 

This follows Nigeria’s recent removal from the FATF grey list, alongside Burkina Faso, Mozambique, and South Africa, which required demonstrable improvements to its AML/CTF enforcement.