The Central Bank of Nigeria (CBN) has introduced new comprehensive guidelines for agent banking operations across the country, directly affecting Point-of-Sale (POS) operators and their parent financial institutions.
The new policy aims to enhance transparency, promote financial inclusion, and ensure greater consumer protection in the fast-growing agent banking sector.
Below are the key highlights of the new CBN guidelines for POS operators:
- Dedicated Account or Wallet:
All agent banking transactions must be conducted through a designated account or wallet maintained by the principal financial institution. The use of non-designated accounts for agent operations is strictly prohibited. - Daily Transaction Limit:
A cumulative daily cash-out limit of ₦1.2 million per agent has been introduced. - Real-Time Transactions:
All transactions must be conducted in real time using secure and interoperable payment systems. Instant settlement and immediate reversal of failed transactions are mandatory. - Geo-Fencing of Devices:
All POS or agent devices must be geo-fenced to operate strictly within the registered business location. Unauthorized movement or operation outside the approved area is prohibited. - Relocation or Closure of Agent Outlets:
No agent may relocate, transfer, or close its outlet without prior written approval from its principal or super-agent. Notice of relocation must be displayed at the business premises at least 30 days before the move. - Transparency and Listing of Agents:
Principal financial institutions must publish and regularly update the list of all their registered agents on their official websites. Each bank branch must also display the list of agents within its locality. - Receipts and Record Keeping:
Agents must issue receipts for all successful transactions, including their business name and location coordinates. All audit and settlement records must be preserved for a minimum of five years. - Super-Agent Requirement:
Every super-agent is required to have at least 50 registered agents spread across Nigeria’s six geopolitical zones. - Liability and Sanctions:
Agents found guilty of misconduct, fraud, or any breach of the new guidelines will be personally liable and subject to sanctions as provided by law.
According to the CBN, these measures are aimed at standardizing agent banking practices, curbing fraud, improving customer confidence, and ensuring that Nigeria’s growing POS ecosystem operates safely and efficiently.
