The Central Bank of Nigeria (CBN) has announced a major policy shift, reversing key elements of its strict cashless agenda by removing the cumulative limit on cash deposits and eliminating fees for excess cash deposits, effective January 1, 2026. This CBN cashless policy reversal 2026 signals a significant recalibration of Nigeria’s financial inclusion strategy, acknowledging the realities of a large informal economy and widespread public resistance to forced digital adoption.
Introduced in phases since 2012, the cashless policy aimed to reduce reliance on physical cash, curb inflationary pressures, improve monetary control, and accelerate digital payments. Over time, it imposed monthly limits on free cash deposits—initially ₦500,000 for individuals and ₦3 million for businesses—with steep charges applied beyond those thresholds. While the policy boosted card transactions and mobile banking usage, it also drew fierce criticism from small businesses, market traders, and rural communities who depend heavily on cash for daily operations.
“The Nigerian economy remains largely cash-driven, especially at the grassroots level,” said CBN Governor Olayemi Cardoso during a press briefing in Abuja. “Our goal was never to eliminate cash, but to encourage digital alternatives. However, we’ve listened to stakeholders, and this adjustment ensures that financial policy supports economic activity—not hinders it.”
The CBN cashless policy reversal 2026 removes all cumulative deposit caps and abolishes associated penalties, allowing banks to accept unlimited cash deposits without surcharges. However, the central bank emphasized that incentives for digital payments—such as lower transaction costs, faster settlements, and integration with government services—will remain in place.
This move follows months of consultation with business associations, fintech firms, and consumer groups. The Manufacturers Association of Nigeria (MAN), Market Women Associations, and the Nigerian Union of Teachers had all called for reform, citing operational disruptions and increased operating costs under the old regime.
Economists say the reversal reflects pragmatism over ideology. Despite rapid growth in digital platforms like NIP, USSD, and QR codes, over 60% of transactions in Nigeria still occur in cash, according to National Bureau of Statistics data. Forcing digitization without addressing infrastructure gaps—such as poor network coverage, unreliable power, and low smartphone penetration in rural areas—was seen as counterproductive.
“Policy must meet people where they are,” said Dr. Yemi Kale, former Statistician-General. “You can’t fine poverty out of existence. Removing these barriers helps formalize more economic activity without punishing those least able to adapt.”
While some digital advocates worry the rollback could slow innovation, others see it as a necessary balance. Fintech leaders argue that competition—not coercion—will drive adoption.
“The future of finance isn’t about banning cash—it’s about making digital so convenient, secure, and rewarding that people choose it naturally,” said the CEO of a leading Nigerian payment platform.
With inflation stabilizing and confidence slowly returning to the banking system, the CBN cashless policy reversal 2026 positions the central bank as responsive and adaptive—a crucial step toward rebuilding trust after years of currency reforms and regulatory uncertainty.
Because in a diverse, dynamic economy like Nigeria’s, one size doesn’t fit all.
And sometimes, progress means stepping back—to move forward.
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