The Central Bank of Nigeria (CBN) has introduced a new policy that places a daily limit of N100,000 on cash withdrawals for Point of Sale (PoS) transactions.
This move is part of the CBN’s aggressive push towards a cashless economy.
A circular issued on Tuesday by the Payments System Management Department detailed the new rules.
The document was signed by Oladimeji Yisa Taiwo, a top CBN official, and addressed to all stakeholders in the financial sector.
The directive caps weekly cash withdrawals across all banking channels at N500,000 per customer.
PoS operators are now mandated to ensure that no individual customer withdraws more than N100,000 in cash per day.
In addition, agents themselves are restricted to a daily cash-out limit of N1,200,000 in total transactions.
“New Rules to Streamline Cash Handling”
The CBN explained that the policy is aimed at addressing inefficiencies in cash management and encouraging digital payment solutions.
“This is about fostering trust in electronic payment systems,” the circular stated.
Banking agents must now use designated float accounts for all operations.
Agents are also required to use the official Agent Code 6010 for all PoS transactions.
The CBN stressed that these accounts must be separate from any other business activities conducted by the agents.
Principals of these agency banking operations are now directly responsible for monitoring their agents.
Agents’ Bank Verification Numbers (BVNs) will be tracked to detect any irregularities.
The policy also requires all PoS terminals to be linked to the Payment Terminal Service Aggregator (PTSA).
This connection will allow real-time monitoring of transactions and account balances.
“CBN Demands Transparency and Compliance”
The directive includes strict reporting requirements for agents.
Daily transaction records and float account balances must be electronically submitted to the Nigeria Inter-Bank Settlement System (NIBSS).
The CBN has promised to provide a standardised reporting template for this purpose.
Non-compliance will attract stiff penalties, including fines and administrative sanctions.
The apex bank warned that principals of PoS operators would be held accountable for any violations by their agents.
This is in line with the Guidelines for the Regulation of Agent Banking in Nigeria.
“Principals must ensure full compliance or face consequences,” the circular warned.
“Fraud Prevention at the Heart of the Policy”
The CBN also highlighted the policy’s role in tackling financial fraud.
By enforcing strict cash-out limits, the bank aims to reduce vulnerabilities in the agency banking sector.
Unscheduled back-end configuration checks will be conducted to ensure compliance.
“This policy is non-negotiable,” an insider at the CBN disclosed.
Experts believe these measures will reduce fraud but could also cause friction between the CBN and PoS operators.
“Mixed Reactions from Operators and Customers”
The announcement has triggered mixed reactions from Nigerians.
While some support the move as necessary for a cashless economy, others worry about its impact on small businesses.
Chika Okafor, a PoS operator in Lagos, expressed frustration.
“How do they expect us to survive with such low limits? Our customers need flexibility, not restrictions,” she said.
On the other hand, tech enthusiast Bola Adebayo welcomed the policy.
“This will force people to adopt digital payments,” he argued.
But analysts predict challenges in the short term, especially in rural areas where digital infrastructure is weak.
“A Step Towards a Cashless Future”
The CBN insists the changes are essential for Nigeria’s economic transformation.
The policy aligns with its broader strategy to modernise payment systems and reduce cash dependency.
However, the success of the initiative will depend on its implementation and public acceptance.
