The Central Bank of Nigeria (CBN) has announced a new cash policy that will limit individuals to a maximum weekly withdrawal of ₦500,000, including withdrawals made through bank counters, Point of Sale (PoS) terminals, and Automated Teller Machines (ATMs).
The new directive, which takes effect from January 1, 2026, marks a major shift in Nigeria’s financial operations and is expected to influence how individuals and businesses manage cash. The CBN also revealed that large cash deposits will now attract no additional charges, as the previous cap placed on deposits has been removed.
Under the updated guidelines, withdrawals that exceed the ₦500,000 weekly limit will attract a 3% excess-withdrawal fee for individuals, while corporate organisations exceeding their allocated withdrawal threshold will be charged 5%.
The apex bank further announced the cancellation of the previous waiver which allowed individuals to make a one-time monthly withdrawal of up to ₦5 million, and a similar extended privilege previously granted to corporate entities.
According to the CBN, this policy review aims to reduce the high cost of managing physical cash within the banking system, improve the security of money movement across the country, and help combat money laundering and other illicit financial activities. It is also aligned with Nigeria’s long-term goal of transitioning into a more digital and cash-less economy.
What This Means for Kwale Residents
With the new withdrawal structure, residents, traders, and local business owners in Kwale may need to adjust their financial habits — especially those who rely heavily on cash for daily operations. Experts advise that individuals should consider scheduling withdrawals more carefully or adopting digital banking channels such as transfers, mobile banking apps, and online payments to avoid excess charges.
Small businesses dealing with bulk cash transactions are also encouraged to explore cashless options to remain within the approved limit and minimise operational costs.
As Nigeria moves steadily toward electronic financial operations, Kwale — like the rest of the nation — is expected to adapt to a system where reduced cash handling becomes the norm.
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