The Central Bank of Nigeria (CBN) has rolled out new operational guidelines for agent banking nationwide, capping total daily transactions at ₦1.2 million per agent and ₦100,000 per customer.
The new framework — detailed in a circular (PSP/DIR/CON/CWO/001/049) signed by Musa Jimoh, Director of the Payments System Management Department — takes immediate effect. However, provisions on agent location and exclusivity will come into force from April 1, 2026.
According to the apex bank, the move aims to strengthen oversight, curb fraud, protect consumers, and enhance transparency in Nigeria’s booming financial services ecosystem.
Tighter Oversight and Monthly Reporting
The CBN said the guidelines are meant to set minimum operating standards for agent banking while promoting financial inclusion and responsible market conduct.
All banks, fintechs, and payment service providers involved in agent banking must now submit monthly reports covering:
- Transaction volumes and values
- Number of active agents
- Incidents of fraud and customer complaints
- Details of agent training activities
These reports must be filed no later than the 10th day of each month. The CBN said this data-driven oversight will help regulators detect anomalies early and make timely policy interventions.
Transaction Limits to Curb Misuse
A major change in the guidelines is the ₦1.2 million daily transaction cap per agent outlet, and a ₦100,000 limit per individual customer.
The CBN said these thresholds were introduced to curb POS misuse, money laundering risks, and system abuse. It added that the limits will be reviewed periodically in line with the official Guide to Bank Charges.
Dedicated Accounts and Real-Time Transactions
All agent operations must now be conducted through dedicated accounts or wallets managed by the principal financial institution. Using non-designated accounts for agent activities will attract sanctions.
The CBN also directed that all transactions must be processed in real time through secure, interoperable systems that support instant settlements and reversals in case of failed transactions — a move designed to reduce customer frustration and delays.
Geo-Fencing, Recordkeeping, and Transparency
Under the new rules, POS devices must be geo-fenced — restricted to their registered locations — to prevent roaming operations linked to rising fraud cases.
Agents must issue receipts showing their business name and GPS coordinates, while financial institutions are required to keep audit trails and settlement records for at least five years.
Furthermore, all banks and payment service providers must publish and regularly update lists of accredited agents on their websites and in their branches, allowing customers to verify legitimacy and avoid fake operators.
Rules for Super Agents and Licensing
Super agents — large networks that manage smaller outlets — are required to have at least 50 active agents spread across all six geopolitical zones.
Agents are also prohibited from relocating or closing business locations without prior approval and must display a 30-day relocation notice to customers before moving.
Sanctions for Violations
The CBN warned that violations will attract strict penalties, including:
- Administrative sanctions
- Suspension from onboarding new agents
- Blacklisting
- Management removal
- Revocation of licenses
Agents found guilty of fraud or misconduct may be placed on an industry watchlist or have their contracts terminated.
Driving Financial Inclusion
The CBN described the revised framework as a strategic effort to deepen financial inclusion, especially in rural and underserved areas where traditional banking access remains limited.
While the number of POS terminals and mobile money agents continues to rise, the sector has faced persistent issues of fraud, excessive charges, and operational abuse — challenges the new guidelines seek to resolve.
Mixed Reactions from Industry Experts
Financial experts have largely welcomed the reforms, saying they will restore discipline and consumer confidence. However, some operators worry that the ₦1.2 million cap may constrain high-volume agents in busy markets and transport hubs.
“While the limit might appear restrictive, it’s a necessary control to track cash flows and prevent abuse,” said a Lagos-based fintech consultant.
Others praised the focus on real-time settlements and geo-tagging, noting it could drastically reduce fraud and system failures.
Outlook
The CBN said it will continue to monitor the implementation of the new guidelines and issue further guidance “as may be appropriate” to maintain stability, innovation, and inclusiveness in Nigeria’s financial system.