The Central Bank of Nigeria (CBN) has introduced sweeping new guidelines that will force Point-of-Sale (PoS) agents across the country to work exclusively with a single financial institution from April 1, 2026. The new rules, released on October 6, 2025, mark the most comprehensive overhaul of the agent banking framework since its inception in 2013 and are expected to reshape Nigeria’s financial services distribution landscape.
Under the new regulation, banking agents—popularly known as PoS operators—must be tied to one principal, which could be a bank, microfinance institution, payment service bank, mobile money operator, or a licensed super agent. For Nigeria’s estimated two million agents, many of whom currently operate multiple Moniepoint, OPay, or PalmPay terminals to serve customers of different banks, this means consolidating operations under a single platform.
The apex bank said the guidelines aim to set minimum standards for agent banking operations, enhance financial inclusion, improve service quality, and ensure responsible market conduct. “The guidelines are designed to provide minimum standards for the regulation and operations of agent banking in Nigeria, enhance agent banking as a delivery channel for offering financial services to drive financial inclusion; and encourage responsible market conduct and improve service quality in the operations of agent banking,” the CBN stated in its circular.
To strengthen oversight, all principals will now be required to publish updated lists of their registered agents, including their locations, on their official websites. Agents will also have to maintain clear separation between their agent banking operations and merchant activities. Principals must monitor their agents’ Bank Verification Numbers (BVNs) to detect transactions outside designated accounts or regulatory limits.
The CBN has also introduced strict reporting obligations. Agents must keep detailed records of all transactions and report any suspicious activities to their principals promptly. In a major shift, the central bank now reserves the right to bypass principals and request records directly from agents at any time.
The industry has been given six months to comply with the new rules. From the implementation date, all agent transactions must be carried out through a dedicated agent account or wallet held with the chosen principal. Any transaction conducted outside this account will be considered a regulatory breach and could result in blacklisting, termination, or even prosecution.
Nigeria’s agent banking sector has grown rapidly in the last decade, largely driven by fintech companies. According to the Nigeria Inter-Bank Settlement System (NIBSS), there were 8.36 million registered PoS terminals in the country as of March 2025, with 5.90 million active. Transaction volumes have surged, reaching a record ₦10.51 trillion ($7.15 billion) in the first quarter of 2025—representing a 301.67% increase from the same period in 2024. Agents have become the primary cash-out point for millions of Nigerians, especially in rural areas where traditional bank branches are scarce.
However, the rapid expansion has also raised regulatory and monetary policy concerns. Currency outside the banking system rose to ₦4.45 trillion ($3.03 billion) in August 2025, while inflation stood at 20.12%. The CBN sees the new rules as part of broader reforms to tighten oversight of the financial ecosystem, enforce daily withdrawal limits of ₦1.2 million ($816.18), and address geo-fencing and operational risks in the sector.
Fintech operators are already upgrading their systems to align with the new framework, which analysts say will consolidate agent networks and could disrupt millions of daily transactions in the short term. But regulators insist the reforms are necessary to maintain financial system stability and build a more structured agent banking ecosystem.
