Nigerians continue to grapple with persistent difficulties in accessing cash due to withdrawal limits imposed on Automated Teller Machines (ATMs) and Point-of-Sale (POS) operations. Despite efforts by the Central Bank of Nigeria (CBN) to improve cash circulation, the problem remains widespread, affecting both individuals and businesses.
Many citizens have voiced their frustration over the inconvenience caused by the withdrawal limits and increased transaction costs. A Lagos resident, Dinma Okonkwo, shared her experience, stating that she could only withdraw a limited amount per transaction, forcing her to make multiple withdrawals to meet her financial needs. Similarly, another resident, Funmi, highlighted the financial burden of additional charges imposed after exceeding the permitted number of free withdrawals per week.
For many Nigerians, ATMs remain a crucial source of cash despite their limitations. Some individuals, particularly the elderly, prefer cash transactions over digital banking due to ease of access and security concerns. A trader, Mrs. Chinwe, expressed distrust in mobile banking following incidents of theft where criminals accessed funds through stolen phones. Consequently, she prefers to withdraw cash or send her children to ATMs to avoid the risks associated with digital transactions.
POS operators have become an alternative solution for cash withdrawals, but they face their own challenges. Operators often struggle to secure adequate cash supplies due to withdrawal limits at banks. Fatima, a POS operator, revealed that she sources cash from various channels, incurring significant fees that impact her business’s profitability. Some operators have devised innovative solutions, such as partnering with local businesses to exchange cash for bank transfers, which helps mitigate some of the operational hurdles.
Bank officials have attributed the cash shortage to the CBN’s cashless policy, which aims to encourage digital transactions and reduce cash dependency. According to an unnamed bank official, the withdrawal limits are designed to ensure equitable cash distribution among customers. Corporate account holders, such as POS operators, often have higher limits, but even these are sometimes insufficient to meet demand.
The CBN has implemented several measures to address the issue, including injecting additional cash into circulation and penalizing banks that fail to comply with cash availability requirements. In December 2024, the central bank introduced stricter monitoring mechanisms to track cash distribution and encourage the use of electronic payment methods.
As Nigeria continues its transition to a cashless economy, balancing the policy’s objectives with the realities of a population heavily reliant on cash remains a pressing challenge. While digital payment options are being promoted, the demand for physical cash persists, underscoring the need for a more comprehensive approach to financial accessibility in the country.
