The Organised Private Sector (OPS) has expressed strong concerns over the Central Bank of Nigeria’s (CBN) recent directive limiting Point-of-Sale (PoS) withdrawals. They argue that the policy does not align with the current economic realities and could adversely affect businesses and consumers, especially in areas with limited banking infrastructure.
On December 17, 2024, the CBN issued a circular introducing a daily cash-out transaction limit of ₦100,000 per individual customer for PoS agents, as part of measures to advance Nigeria’s cashless policy. The directive also sets a cumulative cash-out limit of ₦1.2 million per day for agents and a maximum weekly cash withdrawal limit of ₦500,000 per customer.
Dele Oye, President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), criticized the CBN’s decision, stating that it demonstrates a disconnect from the economic challenges faced by businesses and individuals. He emphasized that such policies could hinder economic activities, particularly in regions lacking adequate banking facilities.
The CBN’s circular mandates immediate compliance from Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Super-Agents. It requires that all agent banking transactions be conducted exclusively through float accounts maintained with principal institutions and that agent banking services be separated from other merchant activities. Additionally, all agent banking terminals must be connected to the Payments Terminal Service Aggregator, with daily transaction reports submitted to the Nigerian Inter-Bank Settlement System.
The CBN asserts that these measures aim to address challenges in agent banking, prevent fraudulent activities, and promote the adoption of electronic payment channels. However, the OPS warns that the policy could disrupt the operations of PoS agents and limit access to cash for consumers, potentially exacerbating the current cash scarcity in the country.
As the policy takes effect, stakeholders are calling for the CBN to reconsider the withdrawal limits to better reflect the economic realities and ensure that the cashless policy does not impede financial inclusion or economic activities, especially in underserved areas.
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