The Central Bank of Nigeria (CBN) has introduced new guidelines to regulate agent banking operations, capping daily cash-out transactions for Point of Sale (POS) agents at N1.2 million and N100,000 for individual customers. The move aims to curb misuse, enhance financial integrity, and protect consumers within the agent banking framework.
The new framework, which takes immediate effect, requires all agent banking transactions to be conducted through a dedicated account or wallet maintained by the principal financial institution. The use of non-designated accounts for agent operations is now prohibited, and violations will attract sanctions. Agents found guilty of fraud, misconduct, or other offenses will be personally liable and may face termination or placement on an industry watchlist.
The guidelines also mandate that super agents, who are only authorized to manage other agents, operate with at least 50 agents spread across Nigeria’s six geopolitical zones. This is to ensure wider access to financial services in rural and underserved areas. Additionally, agents are prohibited from relocating, transferring, or closing their business premises without written approval from their principals or super agents.
The CBN has also directed that all agent banking devices must be geo-fenced, restricting their operations strictly to registered locations. This follows a previous directive requiring all POS terminals to be geo-tagged within 60 days, effective August 26, 2025, with a compliance deadline of October 20, 2025. The move is intended to address rising cases of fraudulent POS transactions across the country.
The new rules also introduce stricter eligibility criteria for prospective agents, including a minimum age of 18 and sound mind. Individuals with non-performing loans, watch-listed BVNs, or a history of financial misconduct are ineligible to be appointed as agents. Principals are required to conduct comprehensive due diligence before appointing agents, verifying credit history, criminal records, and sources of funds.
The guidelines are part of the CBN’s efforts to strengthen the agent banking framework and promote financial inclusion in Nigeria. By enhancing the integrity of agent banking operations, the regulator aims to protect consumers and prevent fraudulent activities. The new rules are expected to have a significant impact on the industry, and stakeholders are advised to comply with the regulations to avoid sanctions.