CBN’s End to Cash Withdrawal Limit

By Bulus Garba

Last week, the Central Bank of Nigeria (CBN) officially wound down one of its most talked-about financial regulations: the cash withdrawal limit policy. The rule, introduced in late 2022, had shaped the way millions of Nigerians accessed their money. The decision to discontinue it has been widely welcomed, not only because it eases everyday transactions, but also because it reflects the evolving leadership style of the current CBN Governor, Olayemi Cardoso.

The move signals that Nigeria now has a central bank willing to review its own decisions in light of new realities. It sends a message that policies, no matter how well-intentioned, are not sacred texts or cast in stone and must be periodically reassessed. Under Cardoso, the CBN is demonstrating that responsible leadership requires listening to citizens, watching the market closely, and adjusting course when necessary.

When the withdrawal limit policy was introduced, it placed strict caps on how much cash individuals and businesses could take out. Individuals were limited to ₦100,000 per week, while corporate bodies could only withdraw ₦500,000 weekly. Any attempt to exceed these limits would attract processing fees of 5 percent for individuals and 10 percent for organisations. The idea was to accelerate Nigeria’s transition toward a cashless society, reduce corruption, curb vote-buying, and create a stronger digital payment culture.

To be fair, the policy did have its benefits. It forced many Nigerians who preferred staying outside the formal banking system to open accounts, embrace fintech platforms, or rely more heavily on digital transfers and POS services. It expanded digital financial activity in a way the country hadn’t seen before. At the time, it made sense within the CBN’s broader strategy.

But even good policies must retire when their usefulness expires. Cardoso and the current management team eventually came to the conclusion that the withdrawal limit policy no longer aligned with Nigeria’s present economic realities. With that, the CBN removed the caps entirely, allowing Nigerians to access their funds without the previous weekly restrictions.

Many have described this decision as both timely and pragmatic. Critics who feared it might hinder Nigeria’s cashless ambition often overlooked one central truth: no institution understands the Nigerian money market better than the CBN. This knowledge is crucial to understanding that the bank is not abandoning the push for digital payments. It simply means recognising that Nigeria cannot force a cashless revolution overnight, especially when the infrastructure supporting such a system remains inconsistent.

The informal sector, which accounts for more than 65 per cent of Nigeria’s economy, still depends heavily on cash. From traders and farmers to artisans and transport operators, thousands of transactions happen daily in places where network failures, power outages, or digital service disruptions are common. Keeping rigid withdrawal limits under these conditions would only frustrate businesses and slow economic activity. In the long run, it could even erode confidence in the financial system.

Cardoso’s leadership has been characterised by an openness to engagement since his emergence. Since assuming office, he has worked to restore public trust at the apex bank, particularly after a turbulent period characterised by cash scarcity, conflicting signals, and widespread anxiety. His approach has focused on stabilising monetary policies, improving regulatory clarity, strengthening collaboration with the government, and sustaining efforts toward financial inclusion.

The CBN’s work with fintech innovators remains a key part of this progress. Nigeria still has a significant unbanked population, and digital platforms are playing a crucial role in bridging that gap. And no, removing the withdrawal limit does not undo the gains already made; it simply prevents financial inclusion from becoming a burden to those trying to survive in a tough economy. A cashless future is still the goal, but Cardoso is saying it must be gradual, realistic, and built on systems that work for everyone.

Feedback on the decision has been very positive. Since the announcement, many Nigerians have taken to social platforms and public conversations to praise the CBN for being responsive. Rarely does a major policy shift elicit widespread relief instead of confusion. People are calling Cardoso thoughtful, measured, and willing to listen, qualities that were badly needed at the apex bank.

Beyond easing access to cash for businesspeople in the informal sector, the decision to end the policy also sends a positive signal to investors. It indicates that the CBN is committed to economic stability, not dogmatic enforcement. It suggests that Nigeria is ready to rebuild confidence in its financial institutions and create an environment where policies serve the economy rather than stifle it.

In this sense, the winding down of the cash withdrawal limit is more than a regulatory update; it is a sign of the CBN’s evolving maturity. It demonstrates that Cardoso’s leadership is anchored on responsiveness, humility, and a firm grasp of the economic landscape. It acknowledges the needs of ordinary Nigerians while positioning the country for long-term growth.

Indeed, if the present is the tone that will define future monetary policy, then for the first time in a long while, Nigerians can look at the apex bank and feel that someone is paying attention.

Garba writes from Abuja.