The Central Bank of Nigeria (CBN) has moved aggressively to sanitize the country’s burgeoning Point-of-Sale (PoS) network, announcing a comprehensive overhaul of the agent banking system through 13 new strict directives.
The key actions—the introduction of a stringent ₦1.2 million daily transaction limit for agents and mandatory monthly activity reporting from banks—are designed to combat rampant fraud and money laundering while boosting consumer confidence.
CBN Governor Olayemi Cardoso stated that the revised framework is a twin move aimed at increasing oversight, boosting service quality, and drastically curbing the misuse of the ubiquitous PoS platform, which has become central to the nation’s financial inclusion drive. The regulator noted that this tightening of control is essential for strengthening financial stability and protecting consumers within the fast-growing financial services ecosystem.
Curbing Misuse: The Rationale Behind the New Framework
The CBN’s decision comes in response to growing concerns over the platform’s vulnerability to illicit financial flows, including transactions that exceed reasonable thresholds for daily consumer activity. The new rules, detailed in a circular (PSP/DIR/CON/CWO/001/049), establish minimum operating standards for agent banking in Nigeria.
While the CBN continues to champion financial inclusion—as seen by the mandate that super agents must now have presence across the six geopolitical zones—it asserts that expansion must not compromise integrity. The framework clearly defines the legal and operational liabilities, warning that using non-designated accounts for operations would constitute a regulatory violation and attract serious sanctions.
The 13 New CBN Mandates for PoS Agent Operations
Effective immediately (with some provisions deferred until April 1, 2026), the following 13 directives have been issued to all deposit money banks, other financial institutions, and payment service providers involved in agent banking:
Monthly Reporting Mandate: Financial institutions must submit detailed monthly reports to the CBN, covering transaction volumes, values, fraud incidents, and customer complaints
Daily Agent Transaction Limit: The new framework pegs the daily cumulative cash-out limit at ₦1.2 million per agent
Daily Customer Transaction Limit: Individual customers are now restricted to a maximum of ₦100,000 in daily PoS transactions.
Dedicated Account Use: All agent banking transactions must be conducted through a dedicated account or wallet maintained solely by the principal financial institution.
Geo-Fencing Requirement: All devices deployed for agent banking must be geo-fenced or tagged to operate strictly within the agent’s registered location to prevent unauthorized mobile use.
Agent List Publication: Financial institutions are required to publish and regularly update the list of all their active agents on their official websites.
Super Agent Coverage: Super agents must maintain a minimum of 50 agents distributed across the six geopolitical zones to ensure wider service coverage.
Relocation Pre-Approval: No agent can relocate, transfer, or close its banking premises without prior written approval from its principal or super agent.
Relocation Notice Display: Agents must display a relocation notice prominently at the business premises for a minimum of 30 days before moving.
Real-Time Transaction Processing: All agent transactions must now be conducted in real time using a secure, interoperable payment infrastructure.
Instant Settlement Technology: Financial institutions are mandated to deploy technologies that enable instant settlements and immediate reversals in case of system failure.
Mandatory Receipt Details: Transaction receipts must include the agent’s name and geographical coordinates to enhance traceability.
Five-Year Record Preservation: Audit trails and settlement records must be preserved for a minimum of five years to support regulatory oversight.
Record Preservation: Audit trails and settlement records must be preserved for at least five years.
Future Mandates (Effective April 1, 2026): Provisions regarding agent location and exclusivity will become effective.
Strict Penalties for Non-Compliance
The CBN emphasized that agents found guilty of misconduct, fraud, or related offences will be held personally liable and may be placed on industry watchlists or have their agreements terminated.
Furthermore, institutions that violate the guidelines risk severe administrative sanctions, including:
- Suspension from onboarding new agents.
- Blacklisting.
- Removal of management officials.
- License revocation.
While most of the guidelines take immediate effect, the provisions concerning agent location and agent exclusivity are scheduled for implementation starting April 1, 2026, giving institutions ample time to comply with these infrastructural changes. The new framework underscores the CBN’s resolve to build public confidence and ensure the integrity of the Nigerian payment system.
