The Central Bank of Nigeria’s (CBN) decision to impose a ₦100,000 daily withdrawal limit for Point-of-Sale (POS) agents has drawn criticism from the Organised Private Sector (OPS) and industry experts, who argue that the policy is detached from the realities faced by businesses and citizens.
The directive, detailed in a circular dated December 17, 2024, mandates immediate compliance by Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Super-Agents. The circular, signed by Oladimeji Taiwo on behalf of the CBN’s Payments System Management Department, outlines measures to enhance the cashless policy, reduce fraud, and standardize agency banking operations.
1. Individual customer withdrawals are capped at ₦100,000 per day.
2. POS agents face a cumulative daily cash-out limit of ₦1.2 million.
3. Customers are restricted to weekly cash withdrawals of ₦500,000.
4. All transactions must occur through float accounts tied to principal financial institutions.
The CBN emphasized that violations of these rules would attract penalties, including monetary fines and administrative sanctions.
The President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Oye, accused the CBN of being disconnected from reality.
“How can businesses operate effectively when banking infrastructure is inadequate, especially in rural areas? The ₦100,000 limit does not reflect the current economic realities,” Oye stated.
He noted that many communities lack access to banking services, making cash transactions essential for survival.
Segun Kuti-George, National Vice President of the Nigerian Association of Small Scale Industrialists, highlighted the potential challenges for rural communities where cash remains dominant.
“Farmers and traders in remote areas may face difficulties due to limited access to electronic payment systems,” Kuti-George said.
However, some industry leaders see merit in the move. The President of the Association of Senior Staff of Banks, Insurance, and Financial Institutions, Olusoji Oluwole, described the policy as a step toward financial inclusion.
“This will ensure POS operators focus on underserved communities, aligning with their primary mandate,” Oluwole noted.
He also praised the initiative as a way to address cash flow issues, discouraging the sale of cash by retailers and promoting its return to the banking system.
While the Director of the Centre for Promotion of Private Enterprise, Dr. Muda Yusuf, acknowledged the policy’s potential to promote a cashless economy, he cautioned against its negative impact on rural businesses.
“The disruption of cash flow could slow down business transactions in informal and rural sectors, affecting economic activities,” Yusuf said.
The CBN urged stakeholders to comply with the directive to ensure a seamless transition to a cashless economy. However, experts called for measures to address implementation challenges, particularly in rural areas, and to engage with affected stakeholders to mitigate potential disruptions.
