…New policy takes effect April 1, 2026
The Central Bank of Nigeria (CBN) has released a fresh set of regulatory guidelines for agent banking operations (PoS operators) across the country, setting a new daily cash-out limit of N1.2 million per agent and introducing stricter compliance measures to safeguard consumers and strengthen oversight in the fast-expanding sector.
The apex bank announced the reforms in a circular signed by Musa Jimoh, Director of the CBN’s Payments System Policy Department.
The circular, addressed to deposit money banks, other financial institutions (OFIs), and payment service providers, takes immediate effect. However, key provisions relating to agent location and exclusivity will become effective from April 1, 2026.
According to the circular, the new rules were developed to “establish minimum standards for operating agent banking in Nigeria, enhance service delivery, encourage responsible market conduct, and promote financial inclusion.” The bank noted that the initiative aligns with its broader financial system stability goals and efforts to expand access to formal financial services, especially in underserved areas.
Jimoh said the apex bank would “continue to monitor developments and issue further guidance as may be appropriate,” stressing that strict compliance with the framework is mandatory for all institutions and their agents.
The CBN directed that all agent transactions must now be conducted through dedicated accounts or wallets maintained by the principal financial institutions for improved transparency and monitoring. The use of non-designated accounts for agent operations has been outlawed, with the bank warning that such practice constitutes a breach and will attract sanctions. Agents who engage in misconduct or fraud will be held personally liable, face termination of agreements, or be placed on industry watchlists.
The new framework also requires financial institutions, referred to as “principals”, to publish and update the list of their agents on their official websites. Each branch of a principal must display within its locality a complete list of the agents operating under its jurisdiction. The CBN stated that “Principals shall publish an updated list of all their agents on their websites. Each branch of the principal shall display the list of its agents in that branch’s locality.”
To improve coverage and access, the CBN mandated that every super agent must have a minimum of 50 sub-agents spread across Nigeria’s six geopolitical zones. A super agent, according to the guidelines, is a licensed entity contracted by a financial institution to manage a network of agents, while maintaining full accountability for their conduct and performance.
The guidelines further stipulate that agents must not relocate, transfer, or close their business premises without prior written consent from their principal or super agent. Any relocation notice must also be displayed prominently at the business location for at least 30 days to notify customers.
In a move to boost transparency and operational integrity, the apex bank directed that all transactions must be carried out in real time using secure and interoperable payment platforms. Financial institutions are required to deploy technologies that ensure instant settlements and automatic reversals in case of failed transactions.
The circular noted that agents’ systems must “generate receipts or acknowledgements for successful transactions, automatically prevent an agent from exceeding daily limits or performing unauthorised transactions, and automatically reject suspicious transactions.” It added that all transaction receipts must include the agent’s name and geographic coordinates, while financial institutions must retain audit trails and settlement records for a minimum of five years.
Under the new structure, the daily cumulative cash-out limit for agent transactions is fixed at N1.2 million, though the CBN retains the right to review or amend this threshold “from time to time for each service in line with the extant CBN Guide to Charges for Banks and Other Financial Institutions in Nigeria.”
To further enhance operational security, devices used by agents must be geo-fenced to function strictly within approved business locations. The apex bank explained that “any device deployed to an agent or utilised by an agent in carrying on agent banking services shall be geo-fenced or tagged to operate within the agreed registered premises or location.” This measure is expected to prevent mobile or unauthorised use of agent devices outside designated areas.
The CBN also introduced stricter monitoring and reporting obligations. All financial institutions must submit monthly returns to the regulator, no later than the 10th of each month, detailing transaction volumes and values, incidents of fraud, number of active agents, customer complaints, and records of agent training and supervision.
The apex bank said it reserves the right to demand additional data, conduct inspections, or directly supervise agent activities at any time. Institutions or agents found in violation of the new framework face a range of sanctions, including suspension from onboarding new agents, blacklisting, removal of management officials or even revocation of 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 stated. It also warned that principals and super agents whose sub-agents repeatedly flout the rules could be blacklisted, restricting them from further participation in the agent banking network.
The CBN explained that the reforms were introduced to consolidate recent progress made in financial inclusion and to maintain public trust in the banking system. With over 1.4 million registered agents currently serving as access points across Nigeria, agent banking has become a cornerstone of financial inclusion policy, especially in rural and peri-urban communities.
“The new framework is part of ongoing efforts to strengthen agent banking oversight, safeguard customers, and build trust in Nigeria’s rapidly expanding financial services ecosystem,” the CBN said.
Analysts believe the revised regulations mark a decisive step toward greater accountability and transparency in the sector. While some operators may face short-term adjustments, stakeholders agree the long-term benefits, enhanced consumer confidence, reduced fraud risk, and expanded access, will drive sustainable growth in Nigeria’s digital and agent banking space.
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