The Central Bank of Nigeria has revised cash-related policies and set new cumulative weekly withdrawal limits of ₦500,000 for individuals and ₦5 million for corporate entities, effective January 1, 2026. 

Withdrawals above these thresholds will attract fees of 3% for individuals and 5% for corporates. The policy also removes many earlier exemptions and requires banks to report and document transactions that exceed the limits.

For cash-heavy sectors, the practical impact will be immediate. Retailers, logistics operators, open-market traders, hospitality businesses and small manufacturers that depend on daily cash collections may face higher costs if large-scale cash handling continues. 

Businesses that pay casual labour in cash will also need to adjust payroll processes to avoid surprise charges.

Banks and fintechs are likely to benefit from increased digital transaction volumes, as more customers shift to transfers, POS and wallet products to stay within the new ceilings. Over time, the policy may strengthen formal transaction records and support anti-money-laundering goals.

What should SMEs do now? First, audit your cash cycle: identify where cash is essential and where it is simply a habit. Second, renegotiate payment terms with suppliers and distributors so that more flows move to bank transfers. 

Third, expand customer payment options by adding reliable POS, USSD and account payment prompts at checkout. Fourth, update internal controls to reduce the risk of staff holding large physical cash balances.

The policy is not a ban on cash, but it is a price signal. Firms that digitise collections and payments early will reduce costs, improve audit trails and position themselves for faster access to credit and partnerships in 2026.