The Central Bank of Nigeria’s (CBN) newly updated cash withdrawal and deposit limits have sparked mixed reactions among analysts, cash-reliant businesses, and Point-of-Sale (PoS) operators, as the country continues to balance financial inclusion with a push toward digital payments.
In a circular released Tuesday, the CBN raised weekly withdrawal limits to ₦500,000 for individuals and ₦5 million for corporates, effective January 1, 2026. Daily ATM withdrawals are now capped at ₦100,000, with both ATM and PoS withdrawals counting toward weekly totals.
The apex bank also removed cumulative cash deposit limits and eliminated excess deposit fees—reversing some of the restrictive cash policies introduced under former governor Godwin Emefiele. Additionally, special authorizations that previously permitted monthly withdrawals of up to ₦5 million for individuals and ₦10 million for corporates have been scrapped.
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According to the CBN, the policy aims to reduce cash-handling costs, curb security risks, limit illicit cash movements, and promote wider use of digital financial channels. The regulator says the adjustments reflect “current realities” in Nigeria’s heavily cash-dependent economy.
Analysts Welcome More Realistic Thresholds
Several economists say the changes offer overdue relief. Abuja-based analyst Dr. Salisu Ahmed described the revised limits as a “step in the right direction,” arguing they better align with the realities of an informal economy where cash transactions remain dominant.
Banking analyst David Omale added that the higher limits could provide liquidity support for businesses grappling with inflation, supply chain issues, and inconsistent cash circulation.
“This is a pragmatic response to the daily financial pressures Nigerians face,” he said. “The increased limits will ease commerce and personal cash management amid rising economic uncertainty.”
Concerns Persist Over Rural Access and Inflation
Not everyone is convinced. Financial strategist Nnenna Okafor warned that, with inflation still elevated and digital channels unevenly accessible, many Nigerians especially in rural areas may require even greater cash flexibility.
Among PoS operators, reactions are divided. Some welcome relief from transaction disputes and anticipate improved customer confidence. Others fear the policy could encourage a slide back into heavy cash usage, undermining progress in digital payments.
A PoS operator in Nyanya cautioned that easier cash access may slow adoption of electronic channels unless paired with stronger digital incentives.
Another operator in Mararaba emphasized that chronic cash shortages at banks remain unresolved: “Raising limits doesn’t fix supply inconsistencies.”
Security experts also flagged potential threats. Abas Ogendengbe, a consultant at Anold Consulting Ltd, warned that increased cash circulation without robust monitoring could heighten theft, fraud, and money-laundering risks.
Policy Mechanics and Fees
Withdrawals above the revised limits will attract 3% fees for individuals and 5% for corporates, calculated on the excess amount. Revenue from these charges will be shared 40% to the CBN and 60% to banks and other financial institutions.
ATM and PoS withdrawals counting toward weekly limits means users will have to manage cash access more deliberately.
The CBN’s latest move comes as Nigeria continues to navigate inflationary pressures and shifting financial behaviors. Its success may depend on how effectively regulators and banks can promote digital alternatives while mitigating new security and liquidity risks.
Stricter PoS Rules Still in Play
In October, it was reported that the CBN tightened agent-banking rules by mandating geo-tagging of PoS terminals and introducing penalties starting at ₦5 million, plus ₦300,000 daily for ongoing non-compliance. The enforcement deadline for these rules has now been extended to April 1, 2026.
PoS operators warn the regulations could squeeze out smaller fintech players and create monopolies in the agent-banking space.
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