The Central Bank of Nigeria (CBN) has issued new guidelines to regulate agent banking operations. Daily cash‑out limits are now capped at N1.2 million for Point of Sale (POS) agents and N100,000 for individual customers. The measures aim to curb misuse, enhance financial integrity, and protect consumers within the agent‑banking framework.
Effective immediately, all agent‑banking transactions must be processed through a dedicated account or wallet maintained by the principal financial institution. The use of non‑designated accounts for agent operations is 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.
Super agents, who are authorized only to manage other agents, must operate with at least 50 agents spread across Nigeria’s six geopolitical zones. This requirement is intended to broaden access to financial services in rural and underserved areas. Additionally, agents may not relocate, transfer, or close their business premises without written approval from their principals or super agents.
The CBN also mandates that all agent‑banking devices be geo‑fenced, restricting operations strictly to registered locations. This follows a prior directive requiring all POS terminals to be geo‑tagged within 60 days, effective 26 August 2025, with a compliance deadline of 20 October 2025, to address the rise in fraudulent POS transactions nationwide.
Eligibility criteria for prospective agents have been tightened. Applicants must be at least 18 years old and of sound mind. Individuals with non‑performing loans, watch‑listed BVNs, or a history of financial misconduct are ineligible. Principals are required to conduct comprehensive due diligence before appointing agents, verifying credit history, criminal records, and sources of funds.
These guidelines are part of the CBN’s broader effort to strengthen the agent‑banking framework and promote financial inclusion in Nigeria. By enhancing the integrity of agent‑banking operations, the regulator seeks to protect consumers and prevent fraudulent activities. Stakeholders are advised to comply with the new rules to avoid sanctions, as the regulations are expected to have a significant impact on the industry.
Comments are closed for this story.