The Central Bank of Nigeria (CBN) has unveiled a new set of operational guidelines for agent banking. This is a rapidly growing arm of Nigeria’s financial services ecosystem. The policy, released on Monday, introduces stricter compliance requirements, transaction limits, and enhanced consumer protection measures aimed at improving oversight and deepening financial inclusion.
At the heart of the new framework is a cap of ₦1.2 million on cumulative daily transactions per agent, with individual customers limited to ₦100,000 per day. While the move signals the regulator’s intent to curb fraud and illicit cash flows, it also raises questions about how smaller agents and rural communities, where cash transactions remain dominant, will adapt.
What the New Guidelines Say
The circular, referenced PSP/DIR/CON/CWO/001/049, was signed by Musa Jimoh, Director of the CBN’s Payments System Management Department. It immediately takes effect, though specific provisions on agent location and exclusivity will begin on April 1, 2026.
Among its key provisions are:
- Transaction limits: Daily cumulative cash-out for each agent is capped at ₦1.2 million, while customers can transact up to ₦100,000 daily.
- Transparency and compliance: All transactions must pass through a dedicated account or wallet operated by the financial institution responsible for the agent. Using non-designated accounts will attract regulatory sanctions.
- Accountability: Agents found guilty of fraud, misconduct, or regulatory violations risk termination, placement on industry watchlists, or criminal prosecution.
- Public disclosure: Banks and payment service providers must publish and update the list of all their agents on official websites and within branch offices.
- Geographic reach: “Super agents” are required to operate at least 50 agents across all six geopolitical zones, ensuring balanced national coverage.
- Relocation and notice rules: Agents cannot relocate or shut down without prior written approval. Relocation notices must be displayed for at least 30 days to inform customers.
- Operational efficiency: All transactions must occur in real time, with instant settlements and reversals supported by secure and interoperable infrastructure.
- Audit requirements: Institutions must retain audit trails and settlement records for at least five years.
Why the CBN Made the Move
The CBN said the measure aligns with its dual mandate of financial stability and financial inclusion, describing the guidelines as a means to “enhance service quality, encourage responsible market conduct, and protect consumers.”
Nigeria’s agent banking network, comprising more than 2 million active POS agents, has become the backbone of cash transactions and digital financial inclusion, especially in rural and peri-urban areas. However, the boom has also triggered fraud risks, regulatory loopholes, and consumer complaints.
The new limits aim to:
- Reduce cash-based money laundering and fraudulent transfers through agent networks.
- Promote digital traceability by ensuring all transactions pass through registered financial institutions.
- Standardize operations among agents, banks, and fintechs.
- Protect vulnerable consumers from unauthorized or inflated charges.
Economic Implications
For the Financial System
The CBN’s move is expected to strengthen trust and transparency in Nigeria’s payment ecosystem. By enforcing real-time settlement and stricter monitoring, it enhances regulatory visibility and mitigates systemic risks associated with informal cash transactions.
However, the daily transaction cap may temporarily slow down liquidity flow in rural markets where cash remains predominant. Smaller traders who rely on high-volume POS agents could face short-term disruptions.
For POS Agents and Fintechs
Operators will likely feel the immediate impact. Many POS agents process daily transactions above ₦1.2 million particularly in densely populated or high-volume markets. This could pressure profit margins and limit scalability.
Fintechs and super agents, meanwhile, may see increased compliance costs from system upgrades, audit trails, and customer verification requirements. However, clearer regulatory structures may also attract new investors by de-risking the sector.
For Consumers
Customers stand to benefit from stronger consumer protection mechanisms, such as instant reversals for failed transactions, real-time receipts showing agent names and location coordinates, and improved service quality.
Yet, rural consumers, often dependent on high-value agents, might initially experience reduced accessibility if some operators scale back.
For the Economy
In the long run, the framework supports the CBN’s broader goals of financial digitization and inclusion, moving Nigeria toward a more formalized, traceable cash ecosystem. It reinforces the integrity of the payment system, a critical factor for attracting foreign investment and improving Nigeria’s Ease of Doing Business ranking.
Looking Ahead
The CBN’s enforcement will depend on collaboration among stakeholders, banks, fintechs, regulators, and consumers. Compliance will likely involve infrastructure investment, data integration, and nationwide sensitization to minimize service disruption.
As the April 2026 deadline for exclusivity rules approaches, the agent banking landscape is poised for restructuring. The challenge will be balancing financial inclusion with regulation, ensuring that oversight does not come at the expense of accessibility, especially for the millions of Nigerians who depend on agent banking for everyday transactions.
Bottom Line:
The new CBN guidelines mark a major recalibration of Nigeria’s agent banking sector. While they introduce tighter controls and compliance burdens, they also promise greater stability, consumer trust, and a more resilient financial system — essential ingredients for Nigeria’s transition toward a more formal, inclusive digital economy.
