The Central Bank of Nigeria (CBN) has announced sweeping reforms to the country’s agent banking operations, introducing exclusivity rules, transaction caps, and stricter compliance standards. Released on October 6, 2025, the new framework consolidates all prior regulations and takes effect immediately, with key provisions such as exclusivity and location rules becoming enforceable from April 1, 2026. The move marks the most significant regulatory overhaul since agent banking began in 2013, aiming to enhance consumer protection, strengthen oversight, and deepen financial inclusion across Nigeria.
Exclusivity Rule to Redefine Agent Operations
Under the new rules, Nigeria’s two million POS and agent banking operators must now choose one financial principal—whether a commercial bank, microfinance institution, payment service bank, or mobile money operator. This means popular agents currently working with multiple platforms such as Moniepoint, OPay, or PalmPay will be restricted to one institution by April 2026. The CBN said this exclusivity aims to improve traceability, prevent fraud, and simplify supervision across Nigeria’s fast-growing agent banking network, where overlapping partnerships have previously created oversight gaps and inconsistencies.
Stricter Standards and Transparency Requirements
The guidelines raise the bar for agent eligibility and compliance. Applicants must not have any non-performing loans within the previous 12 months, must not be bankrupt or convicted of a felony, and must have a clean Bank Verification Number (BVN). Agents must operate only at approved business premises, with petrol stations, retail stores, and restaurants required to conduct banking activities within their registered locations. All agents must also display visible branding for their principals and super agents, list available services and charges, and avoid misleading terms like “bank” or “finance” to prevent public confusion.
Transaction Caps and Reporting Obligations
The CBN’s new framework imposes clear limits on agent transactions to manage liquidity and minimize risks. Individual customers are capped at ₦100,000 in daily and ₦500,000 in weekly transactions, while agents face a cumulative daily ceiling of ₦1.2 million. These limits are designed to reduce money laundering risks and enforce responsible liquidity management, though agents in high-traffic urban centers may find them restrictive. All transactions must now flow through dedicated agent accounts or wallets, and financial institutions must submit detailed monthly reports on transaction volumes, fraud incidents, and customer complaints to the CBN.
Technology, Security, and Oversight Enhancements
The guidelines introduce new requirements for real-time transaction processing, geo-fencing of POS terminals, and data integrity monitoring. Payment Terminal Service Aggregators (PTSAs) are now officially recognized and tasked with registering POS devices, geo-tagging them, and ensuring they are used only at approved locations. This move builds on the CBN’s August 2025 directive mandating the geo-location of terminals to combat fraud and unauthorized mobility. The CBN also requires institutions to deploy secure, interoperable technologies that allow instant settlement and reversal of failed transactions, strengthening trust in agent-based financial services.
Penalties and Enforcement Mechanisms
To ensure compliance, the CBN has granted itself broad enforcement powers, including the authority to inspect agents, super agents, and principals directly. Non-compliant institutions risk administrative sanctions, suspension from agent banking operations, or license revocation. Agents found guilty of fraud or misconduct may face contract termination, blacklisting, or inclusion on industry watchlists, while super agents that fail to monitor compliance could also be penalized. The regulator emphasized that strict enforcement is crucial to maintaining integrity and public confidence in Nigeria’s financial services system.
Nigeria’s agent banking model has become vital to financial inclusion, with 5.9 million active POS terminals and ₦10.5 trillion in transactions recorded in the first quarter of 2025. However, rapid expansion has exposed gaps in oversight, accountability, and service quality. The CBN’s latest reforms aim to bring order, transparency, and consumer protection to the sector, ensuring that the system’s growth supports national economic stability. Though the exclusivity rule may disrupt competition among leading fintechs and banks, the CBN believes it will ultimately deliver a more secure, inclusive, and trustworthy financial ecosystem.