CBN Imposes ₦1.2m Daily Transaction Limit on PoS Agents
The Central Bank of Nigeria (CBN) has introduced a daily transaction limit of ₦1.2 million for Point of Sale (PoS) agents as part of efforts to promote a cashless economy.
The restriction was announced in a circular titled “Circular on Cash-Out Limits for Agent Banking Transactions” released on Tuesday and signed by Oladimeji Yisa Taiwo on behalf of the Director, Payments System Management Department.
“The Bank hereby releases the following policy interventions, which have become necessary to enhance the use of electronic payment channels for agency banking operations,” the circular stated.
Under the new guidelines, the cash withdrawal limit per customer across all channels is set at ₦500,000 per week, while PoS terminals are restricted to a daily cash-out limit of ₦100,000 per customer. Agents, however, can cumulatively process up to ₦1.2 million in cash-out transactions daily.
This development comes as Nigeria continues its transition toward a cashless economy. As of July 2024, there were 3.05 million deployed PoS devices and 4.06 million registered PoS terminals across the country, according to data from the Nigeria Interbank Settlement System Plc.
The CBN’s policy is expected to drive increased adoption of electronic payment systems, although some stakeholders have expressed concerns about the impact on businesses and rural communities that heavily rely on cash transactions.
The central bank urged agents to comply with the new limits to ensure a smooth transition and alignment with the cashless policy objectives.
