The Central Bank of Nigeria (CBN) has released a new set of guidelines to regulate agent banking operations, capping daily cash-out transactions for Point of Sale (POS) agents at N1.2 million and limiting individual customers to N100,000 in daily transactions.
The circular, signed by the Director of the Payments System Policy Department, Musa Jimoh, stated that “These limits are intended to curb misuse, enhance financial integrity, and protect consumers within the agent banking framework.”
The CBN also noted that it “may vary or amend the transaction limits specified from time to time.”
The new framework takes immediate effect, though provisions regarding agent location and exclusivity will be effective from April 1, 2026.
The CBN’s new framework introduces several mandates aimed at tightening security and integrity within the system, a move prompted by “rising cases of fraudulent PoS transactions across the country.”
Eligibility Restrictions:
The new rules bar individuals and entities with poor financial history or criminal records from becoming agents, specifically disqualifying:
- Any person or entity with a non-performing loan with any financial institution in the last 12 months.
- Individuals whose BVNs have been watch-listed or who have been blacklisted for financial misconduct.
- Agents convicted of felonies, fraud, dishonesty, or related offences, as well as persons declared bankrupt or companies that have filed for insolvency.
Operational Requirements:
- Dedicated Accounts: All agent banking transactions must be conducted through a dedicated account or wallet, with the use of non-designated accounts now “prohibited” and subject to sanctions.
- Geo-Fencing: All agent banking devices must be geo-fenced, restricting their operations “strictly to registered locations.” This follows a directive issued on August 25 requiring all PoS terminals to be geo-tagged within 60 days.
- Relocation: Agents are prohibited from relocating, transferring, or closing their business premises without written approval, and they must post a visible relocation notice for at least 30 days to notify customers.
- Principal Duties: Financial institutions (referred to as “principals”) must conduct “comprehensive due diligence” (including verifying credit history and criminal records) before appointing agents and must regularly publish and update the list of their agents on their official websites.
The CBN requires prospective agents to be “at least 18 years old and of sound mind” and demonstrate the ability to carry out permissible activities like deposits, withdrawals, and bill payments.
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