E-Financial
CBN’s New Cash Policy: A Welcome Liberalisation or a Risky Retreat?
By Blaise Udunze
On December 2, 2025, the Central Bank of Nigeria (CBN) announced a policy that significantly departs from the cash-restriction measures Nigerians have faced lately. The apex bank abolished restrictions on cash deposits. Increased the weekly cash withdrawal limits to N500,000 for individuals and N5 million for corporates while substituting the earlier monthly limits of N5 million and N10 million respectively. These modifications, which will be effective from January 1, 2026, represent what the CBN describes as the necessity to “streamline provisions to reflect present-day realities.”
CBN
Authorized by the Director of Financial Policy & Regulation, Dr. Rita I. Sike, the policy overhaul aims to lower cash-management expenses, improve security, and lessen money-laundering threats related to Nigeria’s significant dependence on physical cash. Daily ATM withdrawal limits stay fixed at N100,000 and count toward the total cap. Withdrawals exceeding the limits incur charges of three percent for individuals and five percent for companies, with the revenues divided: 40 percent to the CBN and 60 percent to the banks.
This update comes three years following the disputed 2022-2023 cash redesign crisis at a time characterized by extreme cash deficits, extended lines at banks, and devastating impacts on the informal economy. Consequently, the newest order generates responses: praise from individuals who consider it delayed aid, disapproval from those perceiving it as a bewildering backtrack, and concern from those apprehensive about potential enduring hazards.
Experts Applaud a More Realistic Modification
For economists, in a publication by Nairametrics showed that the action taken by the CBN signifies much-needed practicality. Dr. Salisu Ahmed, an economist based in Abuja, refers to the updated limits as “a step,” praising the CBN for gaining a clearer insight into “cash management practices in a predominantly informal economy.”
He stated that the changes will alleviate the difficulties faced by families and small enterprises due to restrictions. Rigid withdrawal caps had limited transactions, made small-scale commerce more difficult, and caused numerous businesses to experience cash-flow problems. “This adjustment signifies a response from the CBN recognizing the challenges Nigerians face daily and easing rules that previously hindered commerce and individual management,” he clarified.
Banking analyst, David Omale, echoes this view, seeing the CBN’s action as a sign of responsiveness. He points out that higher limits could “enhance liquidity for firms facing challenges from inflation, supply-chain issues and unpredictable cash flows.”
In an economy in which over 60 percent of trade is informal and where the adoption of digital payments varies across different socio-economic groups, experts suggest the updated limits correspond more accurately to real-world conditions. These limits offer businesses flexibility to reinstate transactional liberty and may help recover public confidence diminished by previous cash shortages.
Critics Caution About Continuing Disparities and New Threats
However, the praise is not universally shared. Numerous specialists and industry participants contend that the modifications, although appreciated, are inadequate or might even be detrimental.
Financial strategist Nnenna Okafor contends that the updated limits are insufficient for traders and micro-businesses that depend largely on cash to sustain their operations amid challenges. Due to increasing product prices, logistical difficulties, and unreliable digital banking services in regions, she asserts that numerous Nigerians will still need more liquidity than the new thresholds to stay viable.
Within PoS operators’ players, in Nigeria’s payment system, the response is notably divided.
PoS Operators Split
Certain PoS agents appreciate the modifications, anticipating that they will:
– Reduce friction with banks over “flagged” transactions
– Facilitate processes for clients requiring withdrawals
– Rebuild trust after months of cash shortages
Others convey concern. A PoS operator in Lagos cautions that greater cash availability could hinder the adoption of payments. “While easier access to cash can address problems, it may also decrease dependence on PoS terminals and other digital payment solutions that provide long-term security and efficiency,” she remarked.
She argues that if the CBN does not combine the policy with targeted incentives to encourage payment uptake, Nigeria runs the risk of regressing into deep-rooted reliance on cash.
Another operator in Abuja points out a different issue that has to do with unstable cash supply at numerous commercial banks. He insists that simply boosting withdrawal limits does not automatically fix supply shortages. “If banks cannot consistently provide cash, raising limits fails to solve the issue,” he stated.
Other operators also caution that the new setting might push fintech firms out of the market, which possibly allows monopolies to form since only big payment firms can endure the transition back to increased cash usage.
Experts in Security Alert to Increasing Threats, from Crime
Apart from operational issues, security experts have expressed concerns about the dangers linked to greater cash flow.
Abas Ogendengbe, a security expert at Anold Consulting Ltd., warns that increased access to amounts without strict controls “opens up risks for theft, fraud and money laundering.” He contends that without improvements in surveillance transaction tracking and reporting frameworks by banks, criminal groups might take advantage of the restrictions.
Nigeria continues to confront:
– High rates of petty theft
– Organised criminal cash-for-goods networks
– Ransom-based criminality
– Fraudulent cash-flow manipulation
He contends that a policy boosting the amount of currency in circulation should consequently be accompanied by enhanced institutional protections, rather than diminished ones.
Advantages of the New Policy: Relief, Liquidity, and Business Freedom
Although it has faced criticism, the CBN’s decision carries benefits:
1. Increased Liquidity for the Informal Sector
Small-scale merchants, farm producers, haulers, craftsmen, and market participants relying significantly on cash will experience ease in transferring money, purchasing stock, and expanding their businesses.
2. Reduced Transaction Friction
Companies that once faced limiting restrictions now recover agility, enhancing business continuity and lowering administrative challenges.
3. Restoration of Public Trust
After the trauma of the cash scarcity era, easing restrictions may slowly rebuild confidence in the banking system and encourage more people to save and transact through formal channels.
4. Policy Simplicity
The updated limits, while still restricted, are more straightforward and less administrative compared to the special-authorization system.
The Disadvantages: Policy Volatility, Inflationary Risks, and Stunted Digitalisation
Nonetheless, the policy change is also accompanied by drawbacks:
1. Weakening of Monetary Policy Credibility
Regular significant reversals indicate instability and undermine confidence. A central bank needs to be consistent and foreseeable; Nigeria’s policy environment has shifted in the contrary.
2. Potential for More Money Laundering
Unlimited cash deposits and increased withdrawal limits are inconsistent with standards for preventing illegal financial transactions.
3. Undermining Digital Payment Growth
The increase in fintech was expedited amidst cash availability. A return to reliance on cash might hinder innovation. Dampen the use of safer trackable digital methods.
4. Increased Risk of Robbery and Cash-Based Crime
An increased amount of cash in use results in tangible currency to be stolen additional opportunities for criminals and amplified operational difficulties for the police.
5. Higher Costs of Cash Management
The processes of currency production, circulation, and safeguarding place financial strains on the banking sector and the CBN.
Policy Details and Operational Complexities
The CBN’s circular offers instructions for operations:
– Excess withdrawal charges:
3 percent for individuals
5 percent for corporates
– Revenue sharing:
40 percent to CBN, 60 percent to banks
– Withdrawals from ATMs and PoS terminals contribute to the limit, highlighting the importance for customers to monitor where their withdrawals originate.
– ATMs can now be loaded with all denominations, although third-party cheque cashing is still limited to N100,000.
– Exemptions are maintained for government revenue accounts, microfinance banks, and primary mortgage banks.
– The removal of exemptions for embassies and donor agencies is a move that some parties consider diplomatically risky.
The CBN frames this policy change as a balance, boosting liquidity while still maintaining the nation’s goal of a cashless economy. Nevertheless, its effectiveness depends on the ability of the government and financial institutions to encourage payments while addressing the security challenges posed by greater cash circulation.
A Relief Today, a Question Mark Tomorrow
The CBN’s updated cash-policy structure provides support for families, small enterprises, and the informal sector. It addresses some of the severe effects of previous policies and shows a readiness, though delayed, to adjust to practical realities.
However, the enduring consequences are complex. The policy creates openings, as money laundering hampers progress in payments, increases security threats, and shows a regulatory environment grappling with achieving stability and trustworthiness.
Nigeria is at an intersection. While cash can relieve hardships, it cannot shape the future economic landscape. The current task is to apply this policy without hindering progress, undermining financial integrity, or jeopardizing monetary stability.
The question of whether this constitutes a liberalisation or an expensive withdrawal will in the end hinge on a single element, the CBN’s ability to pair increased liquidity with stronger oversight, steadfast policy direction, and sustained digital-payment incentives.
Only then can Nigeria avoid sliding backward and instead build a financial system that truly reflects the realities of its people, its economy, and its future.
Blaise, a journalist and PR professional, writes from Lagos, can be reached via: [email protected]
When people and businesses gain genuine access to financial services, they gain the ability to transact securely, build savings, and access credit. That access creates the conditions for progress: more stable revenues, better business decisions, and the capacity to grow. Progress, sustained over time, is what produces financial happiness. This framework is how Moniepoint measures its impact.
According to Moniepoint 2025 Impact Report, titled creating financial happiness; “Financial happiness is the feeling of confidence and ease that comes with financial freedom and well-being. It is a condition that develops over time and requires a specific set of enablers to take hold.
For millions of people and businesses across Nigeria, those enablers, like tools and solutions to manage their finances, have historically been out of reach. Moniepoint was built to change that, and this change, for us, begins with inclusion”.
Across the world, access to digital tools is a key driver of financial inclusion. The World Bank’s Global Findex 2025 report finds that more than 60% of adults in low- and middle income economies now make or receive digital payments. In Nigeria, this figure is around 54%. Moniepoint has been a key driver in expanding this access with its POS terminals. “Our terminals also drive financial inclusion for individuals.
The report stated that, in 2025, Moniepoint enabled 100 million people to make payments via their POS terminals across the country. For customers in communities where bank branches are scarce or non-existent, a Moniepoint terminal at their local shop, market stall, or fuel station provides reliable access to digital financial services.
They can make purchases, withdraw cash, and manage their money without travelling long distances or depending solely on physical currency. Critically, customers without cards can complete transactions through direct bank transfers to the terminal’s account.
Beyond practical benefits, Moniepoint terminals have also introduced a new layer of trust to everyday commerce. “When network issues make it unclear if a payment went through, the Moniepoint terminal’s loud beep provides instant confirmation for everyone, building trust in digital payments with every transaction”.
Moniepoint POS terminals operate across all 774 local governments in Nigeria, ensuring that small sellers and large stores can accept payments reliably, regardless of location.
In 2025, millions of Nigerians, businesses and individuals alike, accessed Moniepoint services through its mobile app. Top among them are groups like women and low-income earners, who have historically been excluded from formal banking. Inclusion of women is particularly important, as they typically manage household spending and informal savings but are frequently left out of structured financial systems. “Through our app, they are gaining financial independence and greater control over their economic decisions,” the report added.
For millions of Nigerians, debit cards represent a move away from the limits of cash transactions. They enable safer, more reliable everyday payments, particularly as more local businesses begin to accept digital payments.
Moniepoint debit cards are designed to meet this need. In 2025, Moniepoint customers completed over 300 million card transactions at physical locations, largely driven by essential, food-related purchases. Most of this spending took place at neighbourhood provision shops where households buy everyday items such as rice, cooking oil, and soap.
“We’ve made access to our cards intentionally simple. Customers can get a Moniepoint debit card by requesting it within their mobile app or from neighbourhood agents, without lengthy paperwork or waiting periods. By lowering these barriers, more people are able to access financial tools and participate in the formal financial system.
“Our cards also safeguard our customers’ financial information. They don’t carry special markings or any identifiers that could expose our customers or put their financial security at risk. In the event of loss, this reduces the likelihood of targeted fraud or misuse.
“When people can pay with their debit cards at their neighbourhood stores, they can manage their spending, reduce cash handling, and transact more securely. Merchants also benefit, recording higher transaction volumes and more consistent customer activity.
“Moniepoint helps millions of businesses and individuals across Nigeria access seamless payments and banking, every day. The widespread adoption of our tools and services, as highlighted, demonstrates our critical role in expanding financial access, supporting everyday commerce, and enabling more Nigerians to participate safely and consistently in the digital economy,” the report noted.
ChatPay has launched Africa’s conversational banking platform, enabling individuals and businesses to access financial services through WhatsApp.
The Lagos-based fintech startup, is in controlled rollout, connecting WhatsApp to linked-bank management, airtime and supported electricity payments through simple conversations.
The company said the platform is designed to enable users to send money, pay bills, buy airtime and manage business transactions within WhatsApp conversations, subject to the completion of regulatory approvals and integration with licensed banking partners.
According to ChatPay, the platform is operated by CP Technology Limited and is currently undergoing a phased rollout ahead of its planned public launch.
The company said the initiative is intended to simplify access to financial services by leveraging WhatsApp, which it estimates is used by more than 50 million Nigerians monthly.
Speaking on the idea behind the platform, Adeoluwasubomi Odebunmi, product lead and co-founder, said the concept emerged while she was studying Software Engineering at Babcock University.
“I saw the gap while I was still in school—how much friction there was just to move money. I didn’t want to just study the problem. I wanted to help fix it,” she said.
Odebunmi said she had previously worked on software solutions spanning e-commerce, real estate management, school administration and artificial intelligence applications before co-founding ChatPay.
Aseoluwa Siyanbola, growth lead and co-founder, said his experience managing Nigerian bank accounts while studying abroad highlighted some of the challenges users face with digital banking services.
According to him, difficulties such as one-time password (OTP) failures and inconsistent banking applications inspired the team to explore conversational banking solutions.
“We each encountered similar challenges and came together to build a solution that simplifies everyday financial transactions,” he said.
cAbraham William, tech lead and co-founder, said the company is focused on improving access to financial services through a platform that many Nigerians already use daily.
“We want to make financial services easier to access by allowing people to carry out transactions through a familiar messaging platform,” he said.
William said he oversees the company’s engineering, technology strategy and system architecture.
ChatPay said its services will be introduced in phases as regulatory requirements are met and integrations with banking partners are completed.
The company added that its newly launched “Founding 2,500” programme will enable selected early users to test features, provide feedback and participate in product development before the platform’s wider rollout.
According to the company, interested users can register for the waitlist and the Founding 2,500 programme through its website.
Founded by Odebunmi, Siyanbola and William, ChatPay said its long-term goal is to expand conversational banking services beyond Nigeria into other African markets after its domestic rollout.
United Bank for Africa (UBA) Plc has been named Nigeria’s Best Bank for Retail Banking and Best Bank for Sustainability Leadership (ESG) at the 2026 Euromoney Awards for Excellence, reinforcing its position as one of Africa’s leading financial institutions.
The awards were presented on July 17 at The Peninsula London in the United Kingdom, recognising financial institutions that have demonstrated outstanding performance, innovation, customer impact and sustainable banking practices.
The double recognition highlights UBA’s growing influence in retail banking and its commitment to advancing environmental, social and governance (ESG) principles across its operations.
According to Euromoney, UBA distinguished itself through a series of sustainability initiatives, including the introduction of a Green Financing Facility designed to support households and businesses transitioning to renewable energy.
The publication also cited the bank’s ₦5 billion financing programme, implemented in partnership with the Bank of Industry (BOI), to provide funding for women-owned businesses.
Euromoney further recognised UBA’s commitment to achieving net-zero carbon emissions by 2050, describing it as a demonstration of the bank’s long-term sustainability strategy.
The publication also highlighted the bank’s efforts to integrate sustainability into its operations through the deployment of solar-powered energy solutions across 50 branches and comprehensive ESG capacity-building programmes that have trained more than 16,000 employees across the UBA Group.
In the retail banking category, Euromoney noted that UBA continued to consolidate its position as one of Africa’s largest retail banking institutions.
According to the publication, the bank expanded its customer base to more than 37 million by the end of 2025, while retail banking revenue increased more than fourfold to ₦429.5 billion.
The awards also recognised UBA’s continued investment in digital banking innovation, particularly enhancements to its artificial intelligence-powered chatbot, LEO.
Euromoney noted that LEO became Africa’s first AI-powered banking platform to facilitate cross-border money transfers in local currencies through the Pan-African Payment and Settlement System (PAPSS).
Commenting on the awards, UBA’s Group Managing Director and Chief Executive Officer, Mr Oliver Alawuba, described the recognition as a validation of the bank’s commitment to delivering value to customers while promoting sustainable development across Africa.
“To be recognised as Nigeria’s Best Bank for both ESG and Retail Banking in the same year sends a powerful message that sustainable banking and commercial success are mutually reinforcing.
“At UBA, we are committed to financing Africa’s future, supporting businesses and communities, promoting financial inclusion, and delivering innovative banking solutions that improve lives.
“These awards belong to our customers for their confidence in us and to every member of the UBA family whose dedication continues to make our vision a reality,” he said.
Also speaking, UBA’s Group Head, Marketing, Brand and Corporate Communications, Mrs Alero Ladipo, said the awards reflected the bank’s unwavering commitment to putting customers at the centre of its operations.
According to her, every innovation, investment and banking solution introduced by UBA is aimed at creating exceptional value for customers while expanding access to financial services.
“These awards are a powerful affirmation of our Customer First philosophy.
“Whether it is supporting entrepreneurs with access to finance, enabling seamless digital payments, advancing clean energy financing or expanding financial inclusion across Africa, UBA remains focused on delivering meaningful impact.
“We are honoured that one of the world’s most respected financial publications has recognised these efforts,” she said.
UBA currently operates in 20 African countries, as well as the United Kingdom, United States, France and the United Arab Emirates, serving more than 45 million customers through a combination of digital banking platforms and physical branch networks.
The bank said it remains committed to strengthening financial inclusion, driving innovation and supporting sustainable economic development across Africa and beyond.
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