PoS Withdrawals in Nigeria Now Limited to N100,000 Daily

The Central Bank of Nigeria (CBN) has introduced new restrictions on cash withdrawals through point-of-sale (PoS) terminals as part of its strategy to advance a cash-less economy and combat fraud. The apex bank has set a daily cash-out limit of N100,000 per customer for PoS transactions, with a weekly maximum of N500,000 for withdrawals through all channels.

In a circular sent to all deposit money banks (DMBs), microfinance banks, mobile money operators, and super-agents, the CBN outlined several directives to ensure compliance with its new policy. These measures include a maximum daily withdrawal of N100,000 per customer from PoS terminals, with the total daily transaction limit for agents capped at N1.2 million.

The circular also mandates that agents must use the approved Agent Code 6010 for banking activities, strictly separate agent banking from merchant services, and maintain float accounts with their principals. Additionally, agents are required to report daily transactions and balances electronically to the Nigeria Interbank Settlement System (NIBSS) to facilitate monitoring by the CBN.

The CBN’s intervention aims to streamline the operations of agent banking, create uniform standards across the industry, and mitigate fraudulent activities. In case of non-compliance, the CBN warned that it would impose both monetary and administrative sanctions. Furthermore, the bank indicated that it would carry out impromptu checks to ensure that the guidelines are strictly followed.

This move is part of the CBN’s ongoing efforts to promote digital transactions and reduce reliance on cash within the Nigerian economy, aligning with its broader financial inclusion and economic modernization goals.