The Central Bank of Nigeria (CBN) has implemented a daily withdrawal limit of N100,000 for customers using point-of-sale (PoS) terminals to boost the country’s cashless economy. The policy, outlined in a circular titled “Cash-Out Limits for Agent Banking Transactions,” aims to address industry challenges, reduce fraud, and standardize operational practices across financial institutions and agent banking services. A weekly cash withdrawal limit of N500,000 per customer has also been set, alongside other measures to streamline agent banking operations.
Key directives include ensuring agent banking services are distinct from merchant activities, capping agents’ daily cumulative cash-out transactions at N1.2 million, and mandating that all transactions flow through designated agent float accounts. To enhance oversight, agents’ BVN-linked accounts will be monitored for unauthorized transactions, and all terminals must connect to the Payments Terminal Service Aggregator (PTSA), with daily reports submitted to the Nigeria Inter-Bank Settlement System (NIBSS). Non-compliance with these guidelines will attract fines or administrative sanctions.
The policy underscores CBN’s commitment to modernizing Nigeria’s financial sector by curbing operational vulnerabilities and promoting accountability in agent banking. Stakeholders view this as a significant step towards enhancing financial inclusion while reducing reliance on cash transactions in the economy.
