POS Cash Withdrawal Limit Nigeria (2025 Update)
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| POS Cash Withdrawal Limit Nigeria (2025 Update) |
The Central Bank of Nigeria (CBN) has set clear cash withdrawal limits for point-of-sale (PoS) terminals as part of its strategy to promote a cashless economy and reduce financial fraud. This guide breaks down the current withdrawal limits, the reasons behind them, and their impact on both customers and agents.
CBN Withdrawal Limits on PoS Terminals
As of late 2024, the CBN issued a directive establishing the following limits:
- Daily per-customer cash-out limit on PoS: ₦100,000
- Weekly per-customer withdrawal limit across all channels: ₦500,000
- Total daily cash-out transactions per agent across customers: ₦1,200,000
Agents are expected to operate through designated float accounts, separate their agent and merchant activities, and use the approved agent code 6010. All transactions must be reported electronically to NIBSS daily. Violations could result in penalties or suspension of licenses.
Purpose of the Withdrawal Limit
The new PoS limits were introduced to:
- Reduce fraud and minimize risks associated with large cash movements
- Standardize agent operations nationwide
- Ease pressure on the cash supply system
- Encourage adoption of digital banking and payments
These limits align with Nigeria’s broader cashless policy framework, which aims to modernize the financial ecosystem.
Impacts on PoS Operators and Customers
For Customers:
Customers are now limited to withdrawing no more than ₦100,000 per day through PoS terminals and ₦500,000 per week in total. If a customer attempts to withdraw beyond the daily or weekly limit, the transaction may be declined or require special authorization.
For PoS Agents:
Operators must monitor daily transactions to ensure that the total amount dispensed to all customers does not exceed ₦1.2 million per day. This has impacted revenue for agents in high-traffic locations where high-volume transactions are common.
Real-Life Scenarios
- A customer who withdraws ₦60,000 in the morning can only withdraw up to ₦40,000 more on the same day.
- An agent that processes several small transactions adding up to ₦1.2 million must stop further cash-outs for the day or face sanctions.
Alternatives When Limits Are Reached
If you’ve hit the PoS withdrawal cap, consider:
- Withdrawing from an ATM using your debit card
- Making transfers using your bank's mobile app or USSD codes
- Using platforms that convert airtime or data to cash
- Applying for a short-term digital loan or overdraft
Some mobile banking options like Opay, Moniepoint, and Smartcash also offer efficient transfers and utility payments without relying on physical cash.
Summary Table
| Limit Type | Amount (₦) |
|---|---|
| Daily limit per customer at PoS | 100,000 |
| Weekly limit per customer (all channels) | 500,000 |
| Daily cumulative cash-out per agent | 1,200,000 |
The PoS withdrawal limits introduced by the CBN are part of a broader move to promote financial transparency and encourage digital payment adoption. While the policy has faced criticism from PoS operators, it also presents an opportunity to explore safer and more efficient banking alternatives. Customers are advised to adapt by using mobile banking tools and scheduling larger withdrawals through their banks.
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