CBN’s Daily Withdrawal Limit Sparks Financial Struggles For Nigerians

The Central Bank of Nigeria (CBN) has introduced a controversial policy, imposing a daily withdrawal limit of ₦100,000 for individuals using Point-of-Sale (PoS) services. This restriction extends to a weekly cash-out cap of ₦500,000 per customer and a cumulative daily maximum of ₦1.2 million for agent transactions.

This directive, issued in a circular titled “Cash-out Limits for Agent Banking Transactions”, mirrors the stringent 2022 policy that led to nationwide cash scarcity. The regulation has amplified the hardship faced by millions of Nigerians, especially those who rely on cash for daily purchases like food and essential items.

The Growing Cash Crisis

Across the country, bank ATMs are frequently empty, forcing citizens to depend on PoS agents for cash withdrawals. Unfortunately, this reliance comes with higher transaction charges, further straining their finances.

The CBN has mandated that all agent banking terminals adhere to these cash-out limits, placing additional constraints on the already cash-strapped economy. This policy is causing frustration among Nigerians who need easy access to cash for daily survival.

Key Highlights of the Directive:

Daily Cash-Out Limit: ₦100,000 per customer.
Weekly Cash Withdrawal Cap: ₦500,000 per customer across all channels.
Agent Cumulative Daily Limit: ₦1.2 million.

The policy’s implementation is seen as a double-edged sword, aiming to curb excess cash circulation while inadvertently worsening financial hardship for average Nigerians.

Conclusion

While the CBN’s policy seeks to regulate cash flow and encourage a cashless economy, it has sparked significant discontent among citizens. The government must address the challenges posed by these limits to mitigate their impact on Nigerians’ daily lives.