The Central Bank of Nigeria (CBN) has introduced a new set of operational guidelines for agent banking in the country, placing a daily cumulative transaction limit of N1.2 million per agent. The move is part of the apex bank’s ongoing efforts to strengthen financial stability, enhance consumer protection, and promote transparency in Nigeria’s rapidly expanding financial services ecosystem.
The updated framework, released on Monday through a circular (PSP/DIR/CON/CWO/001/049) and signed by Musa Jimoh, Director of the Payments System Management Department, takes immediate effect. However, provisions relating to agent location and exclusivity will become effective from April 1, 2026.
The CBN said the revised guidelines seek to ensure that agent banking continues to serve as a reliable channel for delivering financial services to millions of Nigerians, particularly in rural and underserved areas, while curbing abuses and operational risks.
Strengthening Oversight and Accountability
In the circular addressed to deposit money banks, other financial institutions, and payment service providers, the CBN explained that the new rules are designed to “establish minimum standards for operating agent banking in Nigeria, enhance financial inclusion, promote responsible market conduct, and improve service quality.”
To achieve these objectives, the CBN has made monthly reporting mandatory for all financial institutions involved in agent banking. These reports must cover transaction volumes and values, the number of active agents, incidents of fraud, customer complaints, and details of agent training activities.
“The monthly reports must include comprehensive data on the nature, value, and volume of transactions conducted by agents. Submissions are to be made no later than the 10th day of the following month,” the circular stated.
This data-driven approach, the apex bank said, will help regulators monitor trends, detect anomalies, and make timely policy interventions to protect the integrity of the financial system.
N1.2 Million Daily Cap and Consumer Protection Measures
One of the key highlights of the new framework is the daily transaction cap. Under the guidelines, a Point-of-Sale (POS) or agent outlet may conduct a maximum of N1.2 million in cumulative transactions per day, while individual customers are restricted to N100,000 in daily transactions.
The CBN explained that these limits were introduced to reduce misuse of POS terminals, mitigate money laundering risks, and protect consumers.
“These limits are intended to curb misuse, enhance financial integrity, and protect consumers within the agent banking framework,” the document read, adding that the limits may be reviewed periodically in line with the CBN Guide to Charges for Banks and Other Financial Institutions.
Dedicated Accounts and Real-Time Transactions
According to the apex bank, all agent transactions must now be conducted through dedicated accounts or wallets maintained by the principal financial institution to which the agent is affiliated. The aim is to improve transparency and facilitate easier tracking of transactions.
The CBN warned that using non-designated accounts for agent banking operations constitutes a regulatory violation and will attract sanctions. This step is expected to prevent diversion of funds and strengthen anti-money laundering controls.
Additionally, all agent transactions must be carried out in real time using secure and interoperable payment infrastructure. Financial institutions are required to deploy technologies that enable instant settlements and immediate reversals in the event of system failures, reducing customer frustration caused by failed or delayed transactions.
Enhanced Recordkeeping and Data Requirements
To further improve regulatory oversight, the CBN directed that all agent transactions must produce receipts showing the agent’s name and geographical coordinates. Institutions must also maintain audit trails and settlement records for at least five years.
This requirement aims to support investigations, dispute resolution, and compliance checks, particularly in cases of fraud or customer complaints. The data retention policy reflects the CBN’s intent to create a more transparent and traceable agent banking system.
Licensing, Super Agents, and Geographic Coverage
The guidelines also introduced new operational standards for super agents—large networks that oversee smaller agent outlets. According to the CBN, every super agent must have at least 50 agents distributed across Nigeria’s six geopolitical zones to ensure balanced coverage and promote financial inclusion.
The central bank also restricted agents from relocating, transferring, or closing their premises without prior written approval from their principal or super agent. Furthermore, agents must display a relocation notice at their business location for at least 30 days before moving, to notify customers and maintain trust.
The CBN added that all POS or agent devices must be geo-fenced or location-tagged, meaning they can only operate within their registered location. This rule aims to curb the increasing trend of mobile or roaming POS operations, which often lead to fraud, double charges, and data security issues.
Reporting and Sanctions for Non-Compliance
Under the new framework, the CBN has strengthened its supervisory powers over financial institutions and their agents. It reserves the right to demand additional information, conduct inspections, or exercise direct oversight at any time.
Institutions or agents found violating the new regulations face strict penalties, which may include:
- Administrative sanctions
- Suspension from onboarding new agents
- Blacklisting
- Removal of management officials
- Revocation of operating licenses
“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 related offences will be held personally liable and could be placed on industry watchlists or have their agreements terminated by their principals.
Transparency and Public Disclosure
To enhance public trust, the CBN has directed all banks, mobile money operators, and payment service providers to publish and regularly update the list of their accredited agents on their official websites and display the same in their branches.
This transparency measure will allow customers to verify the legitimacy of any POS or mobile money agent, reducing the risk of fraud and unlicensed operations.
Promoting Financial Inclusion
The CBN said the new framework is part of its broader strategy to deepen financial inclusion across Nigeria, particularly in rural and semi-urban communities. Agent banking has been one of the most effective tools for extending financial services to unbanked and underbanked populations, especially in areas where traditional bank branches are scarce.
By setting clear operational standards and improving oversight, the CBN aims to make the agent banking model more sustainable, efficient, and consumer-friendly.
In 2024, Nigeria recorded a steady rise in the number of active POS terminals and mobile money agents, reflecting the growing adoption of digital financial services. However, the sector has also faced challenges such as fraud, excessive charges, cash scarcity, and regulatory gaps — issues the new guidelines aim to address.
Industry Reactions and Outlook
Financial analysts and fintech operators have described the new guidelines as a welcome development that could enhance discipline and restore consumer confidence in the agent banking sector. However, some have expressed concerns that the N1.2 million daily cap might constrain agents in high-volume locations, such as markets and transport hubs.
“While the limit may seem low for busy agents handling hundreds of customers daily, it’s a necessary control to monitor cash flows and prevent abuse,” said a Lagos-based financial consultant.
Others believe the emphasis on real-time settlements, data reporting, and geo-fencing will help curb fraud and improve service quality across the industry.
Conclusion
The CBN’s revised Guidelines for the Operations of Agent Banking in Nigeria mark a significant step toward tightening oversight, promoting accountability, and safeguarding consumers in the country’s fast-evolving financial ecosystem.
With Nigeria’s financial inclusion rate still below global averages, the apex bank’s latest move seeks to strike a balance between encouraging innovation and ensuring that digital financial services remain safe, transparent, and accessible to all.
As implementation begins immediately, industry stakeholders — from banks and fintechs to super agents and individual POS operators — will need to adapt swiftly to the new regulatory environment or risk facing stiff penalties.
The CBN reaffirmed its commitment to continuously monitor developments and “issue guidance as may be appropriate” to maintain stability and inclusiveness in Nigeria’s financial system.
