Cash Or Card: How CBN’s Cashless Policy Is Reshaping Yuletide Traditions In Nigeria

In Nigeria, Christmas has always been about vibrant markets, family gatherings, and gift exchanges. However, this year’s festive season is unfolding differently. The Central Bank of Nigeria’s (CBN) renewed cashless policy, which limits Point of Sale (PoS) transactions and cash withdrawals, is redefining how Nigerians celebrate the season.

The CBN announced another cashless policy, designed to rein in currency circulation and promote electronic transactions. This time, they target agent banking, with restrictions capping Point of Sale (PoS) transactions at N1.2 million daily, coupled with cash withdrawal limits of N500,000 weekly and N100,000 daily.

These restrictions have not only altered the economic landscape but also touched the heart of cultural practices.

How the CBN Cashless Policy is Impacting Christmas Markets

In bustling Christmas markets, cash has traditionally been king. From the purchase of live chickens to vibrant Ankara fabrics, these transactions rely heavily on cash flow. Yet, with the daily withdrawal limit of ₦100,000, many traders and customers are grappling with new realities.

Grace Chukwuma, a trader in Oshodi Market, shared her frustrations: “Customers keep telling me they can’t withdraw enough cash to buy what they need. I don’t have a PoS machine, and the internet is often too unreliable for bank transfers. How will I make sales?”

This policy has also affected consumer spending. Shoppers now carefully prioritise essentials, leaving non-essential items unsold. The once-bustling markets are quieter, as buyers and sellers struggle to adapt to a digital-first economy in a cash-reliant culture.

Rural Communities Face Greater Challenges

In rural Nigeria, where Internet connectivity and financial infrastructure remain poor, the impact of the cashless policy is even more pronounced. Festivities in these areas, often steeped in tradition, are now tinged with frustration. Rural residents are finding it hard to purchase items for communal feasts or gifts for loved ones.

Chijioke Eze, a Civil servant, lamented: “Even though we have many PoS agents here, and even when they are around, they charge high fees because cash is scarce. Some are now charging N200 for N5,000. I had to Withdraw NN700 for N30,000. It feels like the government forgot about people like us when they made this policy.”

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The shift toward digital payments has exposed gaps in infrastructure, leaving rural dwellers to navigate a system that feels out of reach. For many, this policy is not just inconvenient—it threatens their ability to participate in cultural traditions.

Gift-Giving Traditions in a Cashless Economy

Christmas gift-giving is another casualty of the cashless policy. From family members exchanging cash as a token of love to gifts for employees and community members, the tradition has always been intertwined with cash availability.

With cash withdrawal limits in place, Nigerians are resorting to creative alternatives. Some are issuing digital transfers as gifts, but this lacks the tangible, personal touch of physical cash. “Sending money online doesn’t feel the same,” said Lagos resident Tolu Adebanjo. “When you hand someone cash, it feels more thoughtful. Now, I have to text them after sending a transfer to explain it’s their Christmas gift.”

PoS Agents Struggle to Stay Afloat

PoS agents, the bridge between Nigeria’s formal and informal economies, are also feeling the strain. The withdrawal limits have turned their operations into a high-stakes balancing act. Many face rising costs and dwindling profitability, forcing them to adjust fees and services.

“I used to make good money helping people withdraw cash,” said PoS agent . “Now, with these limits, I can’t serve my customers properly. The cash I get from the bank is never enough, and people are angry when I increase my fees.”

In Lagos, another agent, Nkechi Eze, highlighted a similar plight: “We are stuck between the banks and the people. The banks won’t give us more than the daily limit, and customers think we’re exploiting them with high fees. This policy is making my business harder every day.”

Some PoS agents are even considering leaving the business altogether. “I’ve been thinking of shutting down for now pending when things will get better,” said Sunday Adebayo, . “If I can’t provide what people need, why should I keep doing this?”

The Larger Economic Implications of the Cashless Push

The CBN argues that its cashless policy will foster financial inclusion and curb cash hoarding. However, the reality on the ground suggests a growing disconnect between policy intentions and societal readiness. While urban dwellers with reliable internet access might adapt to digital payments, rural communities and small businesses face significant hurdles.

Economist Dr. Funmi Ajayi explains: “The CBN is trying to move Nigeria toward a digital economy, but this shift cannot happen overnight. Without addressing systemic issues like poor infrastructure and unreliable payment systems, the policy will continue to hurt those who depend on cash the most.”

A Call for Balance in Policy Implementation

Critics of the cashless policy argue that the government must strike a balance between innovation and inclusivity. Building reliable digital infrastructure, ensuring affordable internet access, and educating the public on financial technology are essential steps toward a sustainable cashless economy.

“If the CBN wants this to work, they must engage with stakeholders, including PoS agents and rural communities,” said financial analyst Chidi Okonkwo. “You can’t impose a policy and expect people to follow it when the tools to comply are unavailable.”

Looking Ahead: Will the Policy Change Christmas Forever?

As Nigerians navigate the complexities of the cashless policy, one thing is clear: the country’s festive traditions are changing. Whether these changes will endure depends on the CBN’s ability to address the underlying challenges that make cash indispensable for millions.

For now, Nigerians are adapting as best as they can, with resilience and resourcefulness. The Christmas season may look different, but the spirit of celebration remains alive—even if it now comes with a digital twist.