The Central Bank of Nigeria (CBN) has introduced a daily transaction limit of ₦1.2 million for Point of Sales (PoS) agents across the country, as part of its ongoing push to promote a cashless economy.

This policy update was disclosed in a circular titled ‘Circular on Cash-Out Limits for Agent Banking Transactions,’ issued 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.

The new directive sets stringent restrictions on cash withdrawals through PoS agents:

• ₦100,000 daily cash-out limit per customer for all agent banking terminals.
• ₦1.2 million cumulative daily cash-out limit for each agent.
• A ₦500,000 weekly withdrawal limit per customer across all channels.

This announcement comes as Nigeria's PoS ecosystem continues to expand rapidly. As of July 2024, data from the Nigeria Interbank Settlement System Plc revealed that the country had 3.05 million deployed PoS machines and 4.06 million registered terminals.

The policy aims to enhance the adoption of electronic payment solutions and strengthen the transition to a cashless economy, a central goal of the CBN’s financial inclusion strategy.

While this move aligns with the apex bank's vision, it may spark mixed reactions among PoS operators and customers relying on high-volume cash transactions.