According to CBN, over N3.3 trillion cash is in circulation as of December 2024, compared to just N1 trillion cash in the beginning of 2023. That’s a significant 230% increased in currency circulation. Due to this, the CBN imposed a Daily Cash withdrawal limit of N100,000 (max of N500,000 bi-weekly) per customer on the point-of-sale (POS) terminal across the nation.
In a statement dated 17 December 2024 and signed by Oladimeji Taiwo on behalf of the Payments System Management Department, the CBN directed all deposit money banks (DMBs), microfinance banks (MFBs), mobile money operators (MMOs), super agents and agents to comply with new regulations. These include a weekly cash withdrawal limit of ₦500,000 per customer, a daily cash-out limit of ₦100,000 per customer, and a daily cumulative cash withdrawal limit of ₦1.2 million per agent. The measures aim to standardise operations, combat fraud, and promote cashless economy.
Temmy Samuel
The CBN’s new withdrawal limitation for individuals on POS machines is part of its initiative for Nigeria’s cashless policy advancement. This directive was announced by the Apex bank itself on Tuesday and it worth noting that the new rules also affect PoS agents as well. CBN also imposed a daily transaction limit of ₦1.2 million for all POS agents, while individual customer withdrawals are capped at ₦100,000 per day.
However, for the fact that the Central Bank of Nigeria’s directive is both affecting PoS agents and their customers, the agents are exploring new ways to amend with the change—mainly, by raising withdrawal fees for customers.
“The CBN will conduct oversight of the aforementioned actions, including impromptu backend checks, to ensure compliance,” the regulator stated in its December 17 circular. “Any breach of these directives will attract appropriate penalties, including monetary fines and administrative sanctions.”
