The Central Bank of Nigeria (CBN) has significantly increased its oversight of the Point-of-Sale (PoS) agent network, introducing a strict daily transaction cap and mandating detailed monthly reporting from all financial institutions.
The twin measures are aimed at improving service quality, boosting financial stability, and aggressively curbing money laundering and fraudulent activities within the ubiquitous agent banking system.
Key Immediate Changes
Effective immediately, the new guidelines enforce the following core regulations:
1. Daily Transaction Limit: Each PoS agent is now restricted to a maximum cumulative cash-out limit of N1.2 million per day. The CBN also stated that individual customer transactions are limited to N100,000 daily, though the N1.2 million cap applies to the agent’s total daily activity.
2. Mandatory Monthly Reporting: Banks and other financial institutions (known as “principals”) must submit a comprehensive monthly report to the CBN. This report must detail agents’ transaction volumes, values, fraud incidents, customer complaints, and the number of active agents. The reports are due no later than the 10th day of the following month.
3. Dedicated Accounts: All agent banking transactions must be conducted through a dedicated account or wallet maintained by the principal institution to ensure transparency. Using non-designated accounts is a regulatory violation.
4. Real-Time Transactions: All agent transactions must be executed in real time using a secure, interoperable infrastructure, with instant settlements and immediate reversals in case of system failure.
Stronger Oversight and Penalties
The CBN is imposing several controls to monitor and regulate agent activity:
Geo-fencing: All PoS devices must be geo-fenced or tagged to operate strictly within the registered business location to prevent unauthorized mobile use.
Agent Liability and Sanctions: Agents found guilty of misconduct or fraud will be held personally liable, potentially facing placement on industry watchlists or termination of their agreements.
Principal Accountability: Financial institutions that violate the guidelines risk severe penalties, including administrative sanctions, blacklisting, and even licence revocation.
Public Listing: Financial institutions are now required to publish and regularly update the list of all their agents on their official websites.
Future Regulations
The guidelines also include provisions that will take effect later:
April 1, 2026: Regulations concerning agent location and agent exclusivity will become effective.
Relocation Notice: An agent planning to relocate, transfer, or close a business must get prior written approval from their principal and display a prominent relocation notice for at least 30 days at the current premises.
Super Agent Requirements: To ensure wider coverage in underserved areas, super agents must have a minimum of 50 sub-agents distributed across all six geopolitical zones.
The CBN stressed that the new framework reinforces its commitment to deepening financial inclusion, strengthening oversight, and building public confidence in Nigeria’s growing financial services ecosystem.
