The Central Bank of Nigeria (CBN) has excluded mobile money and Point of Sale (PoS) agents in Abuja and Lagos from its newly launched cash swap program. This decision comes as the January 31 deadline for phasing out the old N1,000, N500, and N200 notes approaches. A Frequently Asked Questions document released to selected agents and obtained by our correspondent on Monday outlines the guidelines for the cash swap program. According to this document, only five banks have been approved to participate: Access Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, First Bank of Nigeria Limited, and First City Monument Bank.
The document specifies that participation in the program is limited to selected agents who have been profiled by their super agents, mobile money operators (MMOs), or banks and subsequently submitted to the CBN and participating banks. It further clarifies that agents in all 36 states are eligible, except for those in Lagos and the Federal Capital Territory (FCT), Abuja. Additionally, agents are restricted from using the new notes for their regular transactions; they can only utilize them within the framework of the cash swap program.
Regarding the acquisition of new notes, agents must obtain them from one of the designated banks—Zenith, First Bank, Access, UBA, or FCMB. To do so, they must have a bank account with the chosen bank, and their operators will have pre-registered them. When visiting the bank to collect the new notes, agents must provide their name, Bank Verification Number (BVN), and the operator’s name. The bank will also verify the agent’s identity through a photo and fingerprint check. Furthermore, agents are required to maintain a record of their customers’ Know-Your-Customer (KYC) information, which includes the customer’s name, phone number, bank account number, and transaction amount. While there is no limit on how much a customer can deposit, only N10,000 can be released per customer under the cash swap program.
The CBN encourages agents to assist customers in opening bank accounts or wallets. Each agent can receive up to N500,000 in new notes weekly for the program and is expected to document all transactions conducted with the new notes, submitting these records to their operator. The CBN has warned that agents who misuse the new notes for purposes outside the cash swap initiative will face severe sanctions, including potential delisting as an agent, withholding of benefits, and negative reporting to banks and the CBN.
In a memo from Moniepoint to their agents, it was emphasized that the cash swap should only occur through PoS withdrawals of no more than N10,000 per person. Withdrawals exceeding this amount should not be paid with new notes. Agents are permitted to charge cash-out fees for these transactions but are prohibited from imposing additional commissions on customers. They are also required to collect BVN, National Identification Number (NIN), or voter’s card details from customers receiving new notes for weekly submissions to the CBN. The CBN has committed to monitoring the implementation of the program and will provide further guidance as necessary.
Mr. Victor Olojo, the National President of the Association of Mobile Money and Bank Agents in Nigeria, informed our correspondent that a proposed meeting with the CBN did not take place. He noted that agents remain actively involved in the process and that a framework has been established to guide the program. When announcing the cash swap initiative, which began on Monday, the CBN stated that the program aims to enable citizens in rural areas or those with limited access to formal financial services to exchange old naira notes for redesigned ones. To promote financial inclusion, the service is also available to individuals without bank accounts. Agents may, upon request, instantly open a wallet or account, leveraging the CBN’s tiered KYC framework. This approach aims to ensure that unbanked citizens can exchange or deposit their cash seamlessly, without incurring unnecessary risks or costs.
A PoS agent, who chose to remain anonymous, reached out to the executive members of the AMMBAN, expressing concerns about the risks faced by PoS agents in Kebbi State while circulating the new notes. He reported that the new notes are primarily in circulation within Birnin Kebbi, the state capital, and agents are taking significant risks to transport old notes from rural areas to the capital. Most banks in Kebbi State have only one branch in the state capital, while the few banks located in selected local governments are overcrowded. The AMMBAN president previously mentioned that insecurity could impact the operations of some PoS agents, although measures are in place to safeguard both the agents and the cash.
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