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According to the directive, POS agents must ensure that individual customer withdrawals do not exceed N100,000 daily.

Also, agents are restricted to a cumulative cash-out limit of N1.2m per day, while customers face a maximum cash withdrawal limit of N500,000 per week.

The circular read in part, “ALL principals of agents are to comply with the following directives immediately:

“Issuers shall set a cash withdrawal limit (cash-out) per customer (regardless of channel) to N500,000.00 per week; Ensure that all agent banking terminals are set to a daily maximum transaction cash-out limit of N100,000.00 per customer; Ensure that each agent’s daily cumulative cash-out limit shall not exceed N1,200,000.00”

To ensure accountability, the CBN has mandated that all agency banking transactions must be conducted exclusively through float accounts maintained with the principal institutions.

The apex bank also directed that agent banking services be separated from other merchant activities, with agents required to use the approved Agent Code 6010 for transactions.

Also, all agent banking terminals must be connected to the Payments Terminal Service Aggregator, and daily transaction reports, including withdrawal limits and float account balances, must be electronically submitted to the Nigerian Inter-Bank Settlement System using a reporting template provided by the CBN.

The circular emphasised that principals of agent banking operations must monitor accounts linked to agents’ Bank Verification Numbers to detect any unauthorised activities outside the designated float accounts.

It further reiterated that principals would be held fully responsible for the actions and omissions of their agents in relation to banking services.

To ensure compliance, the CBN announced plans to conduct periodic oversight and impromptu backend configuration checks.

Any breaches of the directive, the circular warned, would attract penalties, including monetary fines and administrative sanctions.

The measures, according to the CBN, aim to address identified challenges in agent banking, prevent fraudulent activities, and promote the adoption of electronic payment channels.

However, the policy is expected to impact POS operators and customers, particularly in areas with limited banking infrastructure.

The apex bank urged all stakeholders to adhere strictly to the directives to ensure the smooth implementation of the policy and contribute to the advancement of Nigeria’s cashless economy.

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The President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, Dele Oye, said the Central Bank of Nigeria was out of touch with reality.

He said, “The Central Bank of Nigeria seems completely out of touch with reality. Their monetary policies are simply not grounded in the real world. It’s hard to understand how these kinds of things happen in Nigeria and nowhere else. Their policies are so disconnected from the everyday struggles of businesses and citizens.

“Take a look at the Organised Private Sector. How is anyone supposed to do business when most banks have reduced their branches to just a handful? For example, Standard Chartered now has only two branches in Nigeria—one big, one tiny. In some local government areas, there isn’t even a single bank branch. How are people supposed to operate in such conditions? And then there’s the issue of basic transactions. How can we be in a situation where 100,000 Naira feels like it’s worth nothing? People can’t even get the essentials, like rice or milk, because of the economic chaos. It’s absurd.

“I don’t understand how the Central Bank of Nigeria can keep pushing these policies when they are so clearly damaging. The fact that they refuse to engage with the people who are being affected by their decisions shows just how disconnected they are from reality. It’s not just bad for businesses; it’s bad for the entire country. The Central Bank isn’t even listening.

Meanwhile, the National Vice President of the Nigerian Association of Small Scale Industrialists, Segun Kuti-George, said the impact would be felt more in rural areas.

He said, “The impact of this policy may be more pronounced in rural areas. Villages and remote communities, where cash transactions dominate, may face difficulties as many residents lack bank accounts or access to POS services. For instance, a farmer in a remote location might not have the infrastructure to accept electronic payments, creating challenges for buyers who wish to purchase goods like yam directly from the farm.

“The success of this policy will depend on how these challenges are addressed, particularly for those in rural areas who rely heavily on cash transactions. It remains to be seen how the implementation will unfold, but this is undoubtedly a step towards a more digital economy.”

Meanwhile, he asserted that the recent move by the Central Bank of Nigeria appeared to be a strategic attempt to further reduce the amount of cash in circulation, particularly at a time when reports of cash shortages in the economy are widespread. This policy aims to discourage the demand for cash and promote the adoption of electronic payment methods, such as bank transfers and the use of Point of Sale machines.

“This shift towards electronic transactions is commendable as it facilitates faster, more efficient financial activities while enabling the tracking of funds within the economy. However, whether Nigerians are fully prepared for this transition remains a significant concern. The high level of illiteracy across the country presents a challenge, especially for those who may not be familiar with or have access to electronic payment systems.

“Nonetheless, there is a noticeable increase in the adoption of electronic payment methods. For example, in markets, many traders now accept transfers, and POS operators are readily available to facilitate transactions. This trend suggests that more people are adapting to these changes.”

But the President of the Association of Senior Staff of Banks, Insurance, and Financial Institutions, Olusoji Oluwole, lauded the CBN daily cash-out transaction limit of N100,000 per individual customer for Point-of-Sale agents as a positive move for the banking system.

He emphasized that the development would restore PoS operators to their primary role of serving unbanked populations and providing financial services in areas lacking banks.

According to Oluwole, this would realign the sector with its original mandate of enhancing financial inclusion in underserved communities.

“This step is significant because it will ensure POS operators return to their core responsibility of offering services to unbanked individuals and areas without bank branches,” Oluwole stated.

He further explained that the policy would address the problematic cash flow within the economy.

“One of the challenges we previously discussed was that retailers, who are key sources of cash, started selling cash to POS operators. These operators then resold the cash at a premium to customers. If implemented effectively, this policy will encourage cash to flow back into the banking system,” he added.

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Oluwole expressed optimism that the policy, if properly enforced, would curb exploitative cash transactions and enhance the overall functionality of the banking ecosystem.

The Director-General of the Nigeria Employers’ Consultative Association  Mr Adewale-Smatt Oyerinde, said, “The recent development regarding Nigeria’s cashless policy is a step in the right direction.”

However, Oyerinde noted that the policy has faced numerous challenges in the past, primarily due to hasty or poorly thought-out implementation.

According to Oyerinde, this revised approach will aid the gradual achievement of the cashless policy without creating unnecessary shocks in the economy.

The Director of the Centre for Promotion of Private Enterprise, Dr Muda Yusuf, said the present cash scarcity risks a slowdown of business activity in the country.

“The major effects of the cash scarcity on business is that it slows down the velocity and the volume of business transactions, especially at the informal sector level and micro-enterprise level in our rural areas because these are segments of the economy that uses a lot of cash.

“In the cities, I imagine that the use of electronic payments is very high for retail transactions. But in many of our rural areas, the use of cash is huge.

The CPPE president cautioned against the dangers of cash flow disruption, adding “Since cash is a means of payment, once there is a disruption in the flow of cash, it affects the payment system and therefore affects the flow and the velocity of transactions.

“Economic activities are affected and that is not good for any economy. (This is) because you want economic activities to be seamless and you need a very efficient payment system to make that happen. And cash, of course, is a means of payment. So that is the negative effect it has on the economy.”