THE Central Bank of Nigeria (CBN) has introduced a new set of operational guidelines for agent banking, placing a daily transaction cap of ₦1.2 million per Point-of-Sale (POS) agent nationwide.
The move, according to the apex bank, is part of broader reforms to enhance financial system stability, curb abuse of POS services, deepen financial inclusion, and protect consumers.
The directive, contained in a circular numbered PSP/DIR/CON/CWO/001/049 and signed by Musa Jimoh, Director of the Payments System Management Department sighted by News Point Nigeria, takes immediate effect.
Under the new rules, all agent banking activities including cash-in, cash-out, transfers, bill payments, and wallet services must be conducted through dedicated accounts or wallets maintained by licensed financial institutions.
The CBN warned that any use of non-designated accounts for such transactions would amount to a regulatory breach, attracting severe sanctions.
“The CBN, in furtherance of its mandate for financial stability and inclusion, hereby issues the Guidelines for the Operations of Agent Banking in Nigeria,” the circular stated.
“The guidelines aim to establish minimum standards for operating agent banking, encourage responsible market conduct, and enhance service quality.”
While the rules take immediate effect, certain provisions including agent location and exclusivity requirements — will commence from April 1, 2026.
The guidelines peg the daily cumulative cash-out limit at ₦1.2 million per agent, while individual customers are restricted to a ₦100,000 transaction limit per day.
“POS agents are restricted to a maximum of ₦1.2 million per day. Individual customers are limited to ₦100,000 in daily transactions,” the circular stated.
“These limits are intended to curb misuse, enhance financial integrity, and protect consumers.”
The CBN added that the limits may be reviewed periodically in line with the Guide to Charges for Banks and Other Financial Institutions.
All deposit money banks, other financial institutions, and payment service providers are now mandated to submit monthly returns detailing agent activities, transaction volumes, values, fraud incidents, customer complaints, and training conducted.
Reports are to be submitted no later than the 10th day of the following month, the CBN said.
“The monthly reports must include comprehensive data on the nature, value, and volume of transactions conducted by agents,” it added.
The apex bank reserved the right to demand additional information, carry out inspections, or exercise direct supervisory powers over any financial institution or agent at any time.
Agents are now prohibited from relocating, transferring, or closing their business premises without prior written approval from their principal or super agent.
A relocation notice must also be displayed for at least 30 days to alert customers.
Additionally, all POS devices must be geo-fenced or tagged to operate strictly within registered locations, ensuring transactions are traceable and preventing unauthorised mobile use.
All agent banking transactions must also be processed in real time through a secure, interoperable payment infrastructure that allows for instant settlements and reversals in cases of system failure.
The CBN emphasised that institutions and agents violating the new regulations face administrative penalties, including:
Suspension from onboarding new agents,
Blacklisting or delisting,
Removal of management officials, or
Revocation of operational licences.
“The CBN may, in the event of a breach, invoke any or all sanctions against any defaulting participant in the agent banking system,” the circular warned.
Agents found guilty of fraud, misconduct, or non-compliance will be held personally liable and placed on industry watchlists.
The apex bank noted that the revised framework reflects its commitment to improving financial access, safeguarding consumers, and building public confidence in Nigeria’s fast-growing digital financial services ecosystem.
“The CBN will continue to monitor developments and issue guidance as may be appropriate,” the circular concluded.