While the new CBN rules such as geo-fencing of terminals and one principal is set to take effect from April, the new withdrawal limits started January 1, 2026. The new cash withdrawal rules will affect everyone who uses POS terminals or withdraws from POS agents. These limits will change how you handle cash transactions, whether you’re a business owner, POS agent, or regular customer.

Key Limits You Need to Know

₦100,000 Daily Withdrawal Limit

• Individual customers can withdraw up to ₦100,000 daily from POS terminals across all operators. 
• The limit resets at midnight.
• Applies only to cash withdrawals, not card purchases.

₦500,000 Weekly Withdrawal Limit

• Customers cannot withdraw more than ₦500,000 in a week across all channels including ATM, POS, and over-the-counter. 
• The CBN tracks withdrawals across the entire banking system. 
• Withdrawals above ₦500,000 attract a 3% fee on the excess amount only.

₦1.2 Million Daily Limit for POS Agents

• POS agents face a cumulative daily cash-out cap of ₦1.2 million across all customer transactions.
• Excessive cumulative daily cash-out cap attracts a fine

Note: Excess Withdrawal fees for individuals is 3% on amounts above ₦500,000 weekly while businesses pay 5% on amounts above ₦5 million weekly.

Why Did CBN Introduce These Caps?

The CBN upgraded these policies to reduce cash management costs, strengthen security, and curb money laundering. The aim of the CBN on limiting POS withdrawals is to; 

• Promote digital payments
• Reduce cash-related crimes such as armed robbery
• Curb illicit money movements
• Strengthen financial system oversight.

What This Means for POS Operators

• Strict compliance is mandatory. You must enforce the ₦100,000 daily customer limit and stay within your ₦1.2 million daily agent cap. 
• Violations attract penalties, including monetary fines and administrative sanctions.
• Keep clear signage at your terminal explaining the limits. 
• Your POS system automatically declines transactions that exceed the limit.

What This Means for Merchants

• Expect more customers to pay directly with cards since they can’t withdraw large amounts. 
• Ensure your POS terminal always works properly and train staff to handle card payments professionally.
• Corporate entities are limited to ₦5 million in weekly withdrawals so, plan to digitise payroll and supplier payments to avoid high fees.

What This Means for Customers

• Plan your cash needs strategically. For large purchases, use bank transfers, mobile apps like Kashzoo or pay directly with your card.
• If you withdraw more than ₦500,000 in one week, you’ll pay a 3% fee on the excess amount.
• Don’t try to beat the system. The CBN tracks withdrawals across all banks. 

Common Questions Answered

1. Does the limit apply to card purchases? No, only cash withdrawals. Card purchases are limited only by your account balance.
2. Can I withdraw ₦100,000 from two different agents in one day? No. The ₦100,000 is your total daily limit across all POS transactions.
3. Do ATM withdrawals count toward my limit? Yes. ATM, POS, and over-the-counter withdrawals all count toward your weekly ₦500,000 limit.
4. Can businesses withdraw higher amounts? Corporate bodies are limited to ₦5 million weekly, with 5% fees on excess amounts.
5. Are there exemptions? Revenue-generating government accounts and certain institutional accounts are exempt. However, embassies and diplomatic missions are no longer exempt.
6. What about cash deposits? The CBN removed deposit limits. You can now deposit any amount at no charge.

Practical Tips to Stay Compliant

For POS Agents 

• Register with only one principal. 
• Display withdrawal limits clearly. 
• Send daily transaction reports to NIBSS as required. 
• Report suspicious activities immediately.

For Merchants

• Keep your POS terminal working. 
• Invest in digital payment systems. 
• Train staff on card payment handling. 
• Offer multiple payment options, including bank transfers.

For Customers

• Download your bank’s mobile app and at least one fintech app. 
• Plan large expenses in advance. 
• Use bank transfers for bill payments. 
• Monitor your weekly withdrawal total to avoid fees.

Final Thoughts

The CBN’s new limits represent a major shift in how Nigerians handle money and the enforcement had already begun.

The aim isn’t to eliminate cash, but using large amounts will now come with limits and extra costs. These withdrawal caps shouldn’t be a problem with igital payment infrastructure that gives you more cashless options than before.

Adapt early, stay informed and compliant. Also, embrace digital payment tools. Those who adjust quickly will find these changes manageable and might discover that going cashless makes life simpler.