The Central Bank of Nigeria (CBN) has announced a new policy setting a daily cash-out limit of N100,000 per customer for Point of Sale (PoS) operators, signaling another step in its strategic push toward a cashless economy. This directive, outlined in a circular issued by the Payments System Management Department and signed by Oladimeji Yisa Taiwo, is designed to bolster the adoption of digital payment channels, enhance security, and address operational inefficiencies in the agency banking ecosystem.

Key Highlights of the CBN Policy

Daily and Weekly Cash-Out Limits

• N100,000 daily cash-out limit per customer for transactions conducted via PoS terminals.
• A weekly cash withdrawal cap of N500,000 per customer across all banking channels.
• Total daily cash-out transactions by any PoS agent must not exceed N1,200,000.

These measures aim to reduce excessive reliance on cash, encourage the use of electronic payment systems, and ensure uniformity in operational standards across the financial industry.

Streamlining Agency Banking: Transparency and Oversight

The CBN emphasized the importance of maintaining accountability and transparency in agency banking operations by introducing stricter controls:

1. Designated Float Accounts: All agency banking transactions must be conducted through designated float accounts maintained by agents’ principals, ensuring clearer oversight of funds.
2. Separation of Activities: PoS agents are required to separate agency banking operations from merchant activities and must use the approved Agent Code 6010 for all transactions.
3. BVN Monitoring: Principals must monitor accounts linked to agents’ Bank Verification Numbers (BVNs) to detect unauthorized activities and prevent fraud.

Strengthening Monitoring and Reporting

To enhance operational efficiency and transparency, the CBN has directed the following:

• Integration with PTSA: All PoS terminals must connect to the Payment Terminal Service Aggregator (PTSA) for effective monitoring.
• Daily Data Submission: Agency banking operators must submit daily transaction data, including withdrawals and float account balances, electronically to the Nigeria Inter-Bank Settlement System (NIBSS).
• Standardized Reporting: The CBN will provide a uniform reporting template to ensure consistency in the data submitted.

Penalties for Non-Compliance

The CBN warned that failure to adhere to these directives would result in monetary fines and administrative sanctions. Principals of PoS operators will bear full responsibility for any non-compliance or operational lapses by their agents.

Driving Trust and Efficiency in the Financial Ecosystem

This policy aligns with the Guidelines for the Regulation of Agent Banking and Agent Banking Relationships in Nigeria and underscores the CBN’s commitment to:

• Promoting trust and confidence in electronic payment systems.
• Tackling fraud and inefficiencies within the agency banking sector.
• Advancing the financial inclusion agenda by encouraging the adoption of cashless alternatives.

What This Means for Nigerians

For customers, the policy promotes safer transactions and mitigates the risks associated with carrying large amounts of cash. For PoS operators, it ensures stricter accountability while aligning their operations with global best practices.

As Nigeria moves toward a cashless economy, this directive represents a critical step in modernizing its financial infrastructure and fostering greater trust in electronic payments.

Navigating the Transition

While the new cash-out limits may pose challenges for small businesses and rural communities reliant on PoS services, the CBN’s policy is a reminder of the need to embrace digital payment solutions. For stakeholders in the financial sector, proactive compliance with these measures will be essential to avoid penalties and drive sustainable growth.

Stay informed as the CBN continues to reshape Nigeria’s financial landscape to meet global standards and build a more secure and efficient economy.

Final Thoughts: This groundbreaking policy by the CBN is more than a restriction—it’s a forward-looking strategy designed to position Nigeria at the forefront of the global cashless economy. Businesses and individuals alike must adapt, innovate, and leverage the opportunities this digital shift presents.