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CBN Shakes Things Up: Daily PoS Withdrawals Now Capped at ₦100k—Here’s What It Means for You

By Achimi muktar 

In a decisive move towards bolstering Nigeria's cashless economy, the Central Bank of Nigeria (CBN) has introduced a daily withdrawal limit of ₦100,000 per customer for Point-of-Sale (PoS) transactions. This latest directive, outlined in a circular addressed to financial institutions, aims to tackle fraud, improve operational standards, and streamline agent banking services nationwide.

A New Era for Agent Banking Transactions

The circular, titled ‘Cash-out limits for agent banking transactions’, was sent to deposit money banks (DMBs), microfinance banks, mobile money operators, and super-agents. It outlined several directives designed to regulate cash withdrawals and ensure compliance across all agent banking platforms.

Among the key measures introduced are:

A cash withdrawal limit of ₦500,000 per customer weekly, irrespective of the transaction channel.

A daily cash-out limit of ₦100,000 per customer via PoS terminals.

A cumulative daily cash-out cap of ₦1.2 million for each agent.

Mandatory use of the approved Agent Code 6010 for all agent banking activities, ensuring proper demarcation from merchant services.

Why These Limits?

According to the CBN, these measures are part of an ongoing effort to enhance transparency, address systemic challenges, and curtail fraudulent activities associated with agent banking. The directives also aim to establish uniformity across Nigeria’s expanding agent banking sector.

Holding Principals Accountable

The apex bank emphasized that principals—banks and other financial service providers—are fully liable for the actions of their agents. Principals are expected to monitor agent transactions closely, particularly those linked to agents' Bank Verification Numbers (BVNs), and ensure that all banking activities occur exclusively through designated float accounts.

The CBN will enforce compliance through impromptu back-end configuration checks and oversight activities. Non-compliance could lead to monetary penalties or administrative sanctions, signaling the bank's seriousness about the new regulations.

A Step Toward Greater Efficiency

This move comes as part of broader efforts by the CBN to advance Nigeria’s cashless policy. By limiting PoS cash withdrawals, the bank aims to encourage digital transactions, reduce cash-related fraud, and modernize the financial ecosystem.

What It Means for You

For everyday Nigerians and businesses reliant on PoS terminals, the new withdrawal limits could mean an adjustment in cash handling practices. Customers might need to rely more heavily on digital payment systems or manage transactions within the set limits.

As Nigeria continues its journey toward a cashless economy, the CBN's latest policy serves as both a challenge and an opportunity to embrace financial innovation while fostering accountability in agent banking.

This development underscores the CBN's commitment to a more secure and efficient financial landscape—one transaction at a time.