CBN Limits POS Withdrawals to ₦100,000 Daily, ₦500,000 Weekly

The Central Bank of Nigeria (CBN) has introduced a new policy limiting daily Point of Sale (POS) withdrawals for customers to ₦100,000, with a weekly cap of ₦500,000.

This directive, issued by the Payments System Management Department, aims to promote the adoption of a cashless economy.

“In line with the Central Bank of Nigeria’s ongoing efforts to advance a cash-less economy, the Bank hereby releases the following policy interventions, which have become necessary to enhance the use of electronic payment channels for agency banking operations,” the apex bank said in its circular.

The circular, dated December 17, 2024, was addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Super-Agents.

The directive further outlined specific cash-out limits for POS agents, stating that each agent’s daily cumulative cash-out limit must not exceed ₦1.2 million. Additionally, the CBN emphasized that all agent terminals must comply with these new limits and operate exclusively through agent float accounts maintained with their principals.

Other key measures introduced in the circular include ensuring the separation of agent banking services from merchant activities and monitoring accounts associated with agents’ BVNs to identify unauthorized banking activities. According to the CBN, principals of agents will be held responsible for compliance and could face monetary or administrative sanctions for violations.

The circular also directed that all agent banking transactions, including daily cash-outs, limits, and float account balances, must be reported electronically to the Nigeria Inter-Bank Settlement System (NIBSS). This oversight, the CBN noted, will enhance transparency and accountability within the system.

However, this policy comes at a time when Nigeria is grappling with cash scarcity, a situation that has caused frustration among citizens and businesses.

Recall that Neusroom reported that operators of POS services have increased their charges as Nigeria experiences a resurgence of cash shortages just weeks before the festive season.

In Lagos, Automated Teller Machines (ATMs) in various banks across Nigeria’s economic hub were not dispensing cash. At a Zenith Bank branch in Aguda, Ikeja, the maximum dispensable cash per transaction was ₦500. Other banks in the area had no cash available during a Neusroom visit last week.

The new limits on cash withdrawals are expected to further encourage the use of electronic payment methods, though concerns remain about the impact on small-scale businesses and individuals who rely heavily on cash transactions.