By Capital Watch Media
Deposit Money Banks in Nigeria’s Federal Capital Territory, FCT, have raised their daily over-the-counter cash withdrawal limit to N50,000, as confirmed by major news outlet.
This development marks a significant increase from the previous cap of N5,000 that had been in effect just last month.
A survey by our correspondent on Tuesday revealed that several banks, including Guaranty Trust Bank, GTBank, and Zenith Bank, have implemented the new policy, which aims to ease cash access for customers.
At the GTBank branch on Airport Road, customers were permitted to withdraw up to N50,000 over the counter, while the daily Automated Teller Machine, ATM, withdrawal limit remained capped at N20,000.
Explaining the reason behind the change, a GTBank official said, “We now have more cash, and that is why we are giving out more money. Simple.”
The improved cash availability appears to reflect an easing of cash shortages that had plagued the banking system in recent months.
Despite this positive development, Point of Sale, POS, operators expressed concerns about its impact on their business.
Many operators stated that a one-time increase in withdrawal limits would not necessarily translate to a reduction in service charges.
Faith, a POS operator, argued that the charges would only decrease with a consistent and reliable supply of cash from banks.
“How will I reduce my charges because banks are now giving N50,000? Let it be stable first, then it would reduce,” he said.
Currently, POS operators charge N800 for a withdrawal of N20,000 and N2,000 for a withdrawal of N50,000.
These charges, they say, account for the unpredictability and challenges of sourcing cash for their operations.
While this policy may offer relief to bank customers, analysts suggest that its long-term success will depend on sustained cash availability.
The withdrawal limit increase also aligns with broader efforts by financial institutions to ease customer frustrations and improve cash accessibility.
This change highlights the ongoing evolution of Nigeria’s cash economy, particularly as banks collaborate with stakeholders to stabilise the cash supply chain.
However, experts have cautioned that abrupt policy changes may have unintended consequences if not managed carefully.
As one financial analyst noted, “This is a step in the right direction, but consistency will be key. If banks fail to maintain adequate cash flow, the policy could create more uncertainty in the market.”
With customers adjusting to the new limits, the broader impact on Nigeria’s financial ecosystem remains to be seen.
Meanwhile, banks and other stakeholders continue to focus on rebuilding trust and improving cash availability across the country.
