The Central Bank of Nigeria (CBN) has recently implemented a major policy change, setting a daily cash-out limit of N100,000 for Point-of-Sale (PoS) transactions. This directive is part of the CBN's broader strategy to promote a cashless economy and curb illicit financial activities.
The new regulation, announced in a circular titled “Cash-out limits for agent banking transactions,” applies to all deposit money banks, microfinance banks, mobile money operators, and super-agents across Nigeria.
The CBN's decision to impose this limit aims to address several operational challenges within the financial sector, including reducing fraud and establishing uniform standards across the industry. According to the circular, issuers are required to set a cash withdrawal limit of N500,000 per customer per week, regardless of the transaction channel.
Additionally, agent banking terminals must be configured with a daily maximum transaction cash-out limit of N100,000 per customer, and the cumulative daily cash-out for each agent cannot exceed N1,200,000.
This policy has sparked considerable outcry from PoS operators nationwide, who argue that the restriction hampers their ability to meet customers' cash demands, which often exceed the stipulated threshold. Many operators, particularly those in rural and underserved areas, view the policy as a potential threat to their businesses and livelihoods, especially during the festive season when cash demand typically surges.
Blessing Aku, a PoS attendant in the Nyanya area of Abuja, expressed her concerns, stating, "I have not done any particular transaction where a customer walked into my shop to withdraw N100,000 since the directive was issued by the CBN."
Similarly, Mallam Gambo, a PoS operator at Karu market, lamented the challenges posed by the directive, noting that many of his customers, especially market traders, need to withdraw amounts above N100,000 for their daily transactions.
The directive has also raised concerns about its broader economic impact on the PoS sector, which employs thousands of Nigerians. Grace, a PoS agent in the Mararaba area, highlighted the increased operational costs due to the new policy, stating, "This might force me to raise service charges, and customers won’t be happy about it."
Samuel, a PoS operator in One Man Village, Nasarawa state, echoed these sentiments, fearing that reduced patronage could force him to shut down his business.
Despite the backlash, the CBN remains firm on its stance, reiterating that the policy is part of its efforts to regulate cash flow and encourage cashless transactions. In a recent statement signed by Oladimeji Yisa Taiwo, the Director of the Payments System Management Department at the CBN, the bank assured the public that it would monitor the implementation closely and make adjustments if necessary.
The CBN has emphasized that principals will be held fully accountable for the actions and omissions of their agents. Violations of these directives will attract appropriate penalties, including monetary and/or administrative sanctions. The bank has also confirmed that it will carry out oversight activities, including unannounced backend configuration checks, to ensure compliance.
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