Nigeria's central bank announced sweeping changes to its cash management policies on Tuesday, introducing stricter withdrawal limits and scrapping fees on excess deposits in a bid to curb cash dependency and tackle security and money-laundering risks.

Effective January 1, 2026, individuals will be limited to cumulative weekly withdrawals of 500,000 naira and corporates 5 million naira, the Central Bank of Nigeria said in a circular to banks and financial institutions.

Withdrawals above these thresholds will attract fees of 3% for individuals and 5% for corporates.

The move marks the latest step in Nigeria's long-running push toward a cashless economy, following years of policy adjustments and enforcement challenges.

"The measures aim to moderate the rising cost of cash management, address security concerns and reduce the potential for money laundering," the CBN said.

In October, Nigeria and South Africa, sub-Saharan Africa's two largest economies, were removed from the Paris-based Financial Action Task Force (FATF) list of countries subject to increased monitoring for illicit money flows.

Special authorisations for large monthly withdrawals of 5 million naira for individuals and 10 million naira for corporates have been scrapped, and exemptions for embassies and donor agencies removed. However, government revenue accounts and certain financial institutions will remain exempt.

Banks must report transactions above the limits and maintain separate ledgers for charges collected, the circular added.