By Samuel Timothy
Deposit Money Banks (DMBs) in Nigeria’s Federal Capital Territory have raised the maximum daily over-the-counter withdrawal limit to N50,000, up from the previous cap of N5,000. This development comes as banks, including Guaranty Trust Bank (GTBank) and Zenith Bank, reportedly gained access to more cash reserves.
At GTBank’s branch on Airport Road, customers can now withdraw up to N50,000 at the counter, while ATM withdrawals remain capped at N20,000 daily. A bank official explained the rationale, stating, “We now have more cash, and that is why we are giving out more money. Simple.”
The move follows months of strict withdrawal limits introduced by the Central Bank of Nigeria (CBN) as part of its cashless policy, which had capped daily withdrawals to manage cash circulation.
PoS Operators Unaffected by Withdrawal Increase
Despite the increased withdrawal limits, Point-of-Sale (PoS) operators have announced no immediate plans to lower service charges. Operators currently charge N800 for N20,000 withdrawals and N2,000 for N50,000.
Faith, a PoS operator, highlighted that steady cash availability not a temporary increasewould determine whether charges could be reduced. “How will I reduce my charges because banks are now giving N50,000? Let it be stable first, then it would reduce,” he stated.
The new withdrawal limits may offer some relief for customers who have faced cash shortages due to earlier restrictions. However, the issue of high PoS charges remains a significant concern for many, especially small-scale traders and low-income individuals who rely on cash transactions.
Impact of Cash Policies on Nigerians
The CBN cashless policy has significantly impacted Nigeria’s economy, particularly for those in rural areas or informal sectors. Earlier restrictions, which limited individual withdrawals to N100,000 daily or N500,000 weekly, caused widespread inconvenience. Many ATMs ran dry, forcing customers to turn to PoS operators despite their high fees.
According to recent data, currency in circulation increased by over 56% year-on-year, reflcting efforts to ease cash scarcity. Still, PoS operators argue that inconsistent cash supply disrupts their ability to offer fair pricing.
The updated withdrawal policy signals an attempt by banks to address ongoing cash scarcity while maintaining some level of restriction to support the cashless agenda. However, its long-term effectiveness in balancing cash availability and service costs remains to be seen.
