The Federal Government of Nigeria has clarified a recent misconception regarding a supposed limit on card payments in the country. According to a statement made by Dada Olusegun, Special Assistant to the President on Social Media, there is no N500,000 cap on total card payments in Nigeria. This clarification comes after social critic Daniel Regha claimed that the Central Bank of Nigeria (CBN) had imposed a limit on the use of Automated Teller Machines (ATMs).
The CBN had indeed introduced a policy on December 2, 2025, which set limits on ATM cash withdrawals and certain Point of Sale (POS) transaction thresholds. However, these measures were primarily aimed at preventing fraud and ensuring system integrity, rather than restricting legitimate spending. The policy was put in place to manage risk and prevent fraudulent activities, which can compromise the security of financial transactions.
It is worth noting that the CBN had previously announced a policy document on thresholds for ATM and POS cash withdrawals in 2023. This move was part of the bank’s efforts to promote electronic payments and reduce the reliance on cash transactions. The introduction of these thresholds was intended to encourage the use of digital payment channels, which are generally more secure and efficient.
The clarification provided by the Federal Government is significant, as it dispels confusion and provides reassurance to individuals and businesses that rely on card payments for their financial transactions. The CBN’s policy on ATM and POS transactions is designed to balance the need for convenience with the need for security and risk management. By setting limits on cash withdrawals and certain transactions, the bank aims to prevent fraudulent activities and protect the integrity of the financial system.
In the context of Nigeria’s efforts to promote digital payments and reduce cash transactions, the CBN’s policy is a step in the right direction. The use of digital payment channels can help to increase financial inclusion, improve transaction efficiency, and reduce the risk of fraud. As the country continues to develop its digital payment infrastructure, it is essential to strike a balance between convenience, security, and risk management. The Federal Government’s clarification on the CBN’s policy provides clarity and reassurance to stakeholders, and highlights the importance of accurate information in promoting a secure and efficient financial system.
