The adjustment follows concerns from operators and merchants that the original limit was too restrictive for Nigeria’s growing agent banking network.

Under the revised framework, operators including Moniepoint, OPay and PalmPay must continue geo-tagging PoS terminals with accurate coordinates, but terminals can now operate within a wider approved radius.

The CBN said the measure is aimed at strengthening oversight and curbing fraud while allowing more flexibility for merchants and payment companies.

Nigeria’s PoS ecosystem has expanded rapidly in recent years, becoming a major channel for cash withdrawals and digital payments nationwide, though regulators have raised concerns over fraud, identity masking and terminal misuse.

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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.

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In a circular signed by Rakiya Yusuf, director of the payments system supervision department, the apex bank said geo-location data will now be captured at every transaction point and included in the reporting payload. It directed that all existing terminals—about six million—be geo-tagged within 60 days, with compliance checks starting on October 20, 2025.

The directive also mandates operators such as Moniepoint, Opay, and Palmpay to ensure all PoS devices have GPS-enabled geolocation services. In addition, operators must adopt the ISO 20022 messaging standard, a global protocol designed to harmonise financial transactions and align with SWIFT’s ongoing migration.

According to CBN, the reforms are aimed at curbing fraud, preventing terminals from being moved outside their certified locations, and strengthening Nigeria’s case to exit the Financial Action Task Force (FATF) grey list, where it has been since 2023.

PoS terminals have become the lifeline for millions of Nigerians since their introduction in 2013, with transactions hitting ₦10.51 trillion in the first quarter of 2025 alone—over 300% higher than the same period last year. But regulators argue the explosive growth has also created loopholes for fraud and criminal exploitation.

The circular further instructs that all PoS terminals must be registered with a Payment Terminal Service Aggregator (PTSA) such as the Nigerian Inter-Bank Settlement System (NIBSS) or Unified Payment Services Limited. Terminals not routed through a PTSA will be barred from processing transactions.

However, industry operators say the 10-metre restriction is impractical. One payment executive told TechCabal that retrofitting and certifying millions of terminals within the given timeframe is “logistically impossible.”

“Nigeria does not have the manpower for this. At least 60,000 terminals would need to be geotagged daily. It requires thousands of engineers and field agents, but the people simply don’t exist,” the source said.

Concerns also extend to businesses with large premises. “The rule of a 10-metre radius may work for a roadside kiosk, but what about supermarkets, hotels, malls, or fuel stations where payments occur beyond that distance? The rule is unworkable in real life,” the operator added.

Oluwagunwa Ibirogba, chairman of the Lagos chapter of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), said fraud prevention is critical but urged a more flexible framework.

“They should leverage existing networks to map terminals. Reverification, not rigid restrictions, is what ensures we know who is active and where they operate,” he said, warning that trust between agents and customers could be eroded if the policy is implemented as-is.

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The case stems from what was described in court documents as a “glitch” on Providus Bank’s POS terminals, which allegedly allowed about ten merchants, including the defendants, to benefit from unauthorized double settlements. Justice Emeka Nwite ruled that Moniepoint must be joined as a co-respondent, noting that the court could not fully resolve the matter without the fintech company that initiated the petition.

The petition dates back to February 2025, when Moniepoint asked the Inspector General of Police to investigate suspicious double payments amounting to more than N21 billion. The firm claimed the merchants admitted receiving the funds and later used them to acquire assets described as proceeds of fraud.

Following preliminary investigations, the matter was referred to the EFCC. The defendants later filed multiple suits to block further questioning, but the court ruled on August 12 that Moniepoint’s participation was necessary to provide material evidence.

The EFCC and defense counsel did not oppose the fintech’s application, which was subsequently granted. The case remains pending as the court ordered all filings to be amended to reflect Moniepoint’s inclusion.

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Nigeria’s journey toward becoming a digital payment hub is a testament to the nation’s adaptability and innovation. From the vibrant markets of Lagos to the remote communities in the North, the shift toward cashless transactions has reshaped how Nigerians engage in commerce. The proliferation of mobile money, point-of-sale (POS) systems, and online payment platforms has introduced unprecedented convenience and efficiency. However, as with any transformative process, challenges remain, particularly in ensuring that the benefits of digitalization are accessible and equitable for all.  

The recent Visa report, “Value of Acceptance: Understanding the Digital Payment Landscape in Nigeria”, underscores the immense potential of digital payments, especially for small and medium-sized enterprises (SMEs). It highlights how digital transactions can foster financial inclusion, stimulate economic growth, and empower businesses. Yet, the report also sheds light on a pressing issue: the rising cost of transaction fees, which can hinder the full realization of these benefits for many Nigerians. 

The Central Bank of Nigeria (CBN) has introduced a new policy, effective March 1, 2025, including ATM withdrawal charges. Under this policy, Nigerians will incur a N100 fee for every N20,000 withdrawal at off-site ATMs, with an additional N500 surcharge at standalone cash points. While this measure may be intended to encourage cashless transactions and reduce the cost of cash management, it has sparked concerns about its impact on individuals and businesses, particularly those in underserved areas where cash remains a primary means of exchange. 

The Socio-Economic Rights and Accountability Project (SERAP) has expressed reservations about the policy, describing it as potentially burdensome for ordinary Nigerians. This perspective highlights the need for a balanced approach that considers the economic realities faced by many citizens, especially in a period of rising inflation and financial uncertainty. At the same time, it is important to recognize the broader context in which the CBN operates, including the need to manage the costs associated with maintaining a robust financial infrastructure. 

 The digital payment revolution in Nigeria holds immense promise. It has the potential to streamline processes, reduce inefficiencies, and create opportunities for millions. However, for this transformation to be truly inclusive, it must address the concerns of all stakeholders. Transparency in pricing, affordability of services, and accessibility for underserved populations are critical factors that will determine the success of Nigeria’s digital payment ecosystem. 

 To move forward, several steps can be considered. First, fostering greater transparency in the pricing of digital payment services can help build trust and ensure that users are fully aware of the costs involved. Second, policymakers and regulators could explore ways to balance the need for sustainable financial systems with the goal of minimizing the financial burden on consumers and SMEs. This might include targeted interventions to support vulnerable populations and incentivize the adoption of digital payments. 

Furthermore, expanding financial literacy initiatives can play a key role in addressing hesitations about digital payments, particularly in rural areas. By educating Nigerians about the benefits and practicalities of cashless transactions, stakeholders can help bridge the gap between traditional and digital financial systems. 

 Nigeria’s digital payment revolution is a significant achievement, and the country is well-positioned to serve as a model for other nations in Africa. However, ensuring that this transformation is inclusive and equitable will require ongoing collaboration among policymakers, financial institutions, and the public. By addressing the challenges and building on the progress made so far, Nigeria can create a digital payment ecosystem that benefits all its citizens. 

 As the nation continues to embrace digitalization, it is essential to keep the focus on creating a system that is not only technologically advanced but also fair and accessible. This balanced approach will ensure that the digital payment revolution truly serves as a catalyst for inclusive growth and economic empowerment.

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The Corporate Affairs Commission (CAC) has announced plans to take drastic measures, including shutting down Point of Sale (PoS) businesses that have failed to comply with its mandatory registration directive.

This follows the expiration of a 60-day registration deadline on September 5, 2024.

In a public notice issued on Friday, the CAC stated that there was inadequate compliance with its directive and warned that operators who failed to register might be involved in “unwholesome activities.”

The commission emphasized its commitment to work with law enforcement agencies and other stakeholders to implement a comprehensive enforcement and sanction framework, which could include business shutdowns and severe legal consequences.

“The Corporate Affairs Commission wishes to remind the general public, particularly Fintech operators also known as Point of Sale (POS) operators, that the 60-day deadline…for the registration of such businesses expired on September 5, 2024,” the notice read.

The commission commended those who had complied but criticized those who had not, suggesting that their refusal could be due to involvement in improper activities.

This development comes amid opposition from fintech business owners under the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), who have challenged the CAC’s registration requirement in court, describing it as illegal.

AMMBAN maintains that the directive violates the Companies and Allied Matters Act (CAMA), which states that the CAC has no jurisdiction over individuals not operating as a company.

The association’s General Secretary, Oluwasegun Elegbede, stated that the case is already in court and is set for hearing in September.

Earlier in May, the CAC had mandated that PoS agents of major fintech companies, including OPay, Palmpay, and Moniepoint, register their businesses by July 7, 2024.

The deadline was later extended to September 5, 2024, with a warning that non-compliance would lead to prosecution and potential business closures.The directive comes amid concerns about rising fraud involving PoS terminals and the Central Bank of Nigeria’s (CBN) efforts to regulate cryptocurrency transactions.

According to the Nigeria Inter-Bank Settlement System (NIBSS) Plc, PoS terminals accounted for 26.37% of fraud incidents in 2023.

CAC’s Registrar-General, Hussaini Magaji, defended the registration requirement, citing Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020 and the 2013 CBN guidelines on agent banking.

He argued that the move is aimed at safeguarding fintech businesses and customers while strengthening the economy.

As the court prepares to hear the case, the CAC remains resolute in its enforcement strategy, with potential business shutdowns looming for non-compliant operators.

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TECHDIGEST – The National President, Association of Mobile Money and Bank Agents in Nigeria, Victor Olojo, has said the Central Bank of Nigeria is set to clampdown on illegal Point of Sales operators in the country.

In an interview with Sunday PUNCH, he said the apex bank was planning to sanitise the industry, considering its role in driving its cashless policy. He explained that agents operating under umbrellas and hawking PoS services would be the most hit.

He said, “Agents must wake up, there are rules. Agents operating under an umbrella, agents hawking PoS services, all these things would soon be curtailed. The CBN is coming with a sledgehammer very soon on agents operating outside its guidelines.

“Some of these agents are not properly registered; the minimum accepted is a kiosk, an identifiable address.”

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He noted that there must be confidentiality regarding cash withdrawals and the agents must ensure their clients can carry out transactions in enclosed spaces.

2023 is expected to witness growth in PoS transactions. According to the CBN’s policy limiting withdrawals for individuals and corporates, “Customers should be encouraged to use alternative channels (Internet banking, mobile banking apps, USSD, cards/PoS, eNaira, etc.) to conduct their banking transactions.”

Commenting on this expected growth, Olojo, said, “For now, the industry is still on an upward growth. We are still growing upwardly, there is still room for a lot of growth.

“It is part of the financial inclusion agenda, everything is in line. We need to have as many agents come into the system until we get to a saturation point. We are not there yet.

“Although, more agents are needed in the rural areas than in the city and urban centers. We still expect more upward growth, because fintechs are still coming up too.”

According to him, the industry was far from a saturation point since there was a government policy promoting it and agents were making profits.

“So yes, the cashless policy is a major factor why we have an increase in the number of agents,” he said.

Olojo explained that even though there were initial fears on an upward review in PoS transaction charges, that was highly unlikely.

He said, “As regards charges, the CBN is currently working out a plan for mobile money and agents to have access to funds. This is to those that are credible, those that are properly registered. The five per cent or three per cent that applies to people that are taking more than is required from the banks may not apply to mobile agents.

“So, there would be no need for an increment in charges. However, if that doesn’t come in in time, obviously the cost will be transferred.”

According to the NIBSS, there are 986,252 registered PoS terminals in Nigeria (this is based on the last time it updated this record, July 2021). The total number of deployed PoS terminals as of January 2023 was 955,234. Although according to Olojo, there are over 1.4 million mobile money and banking agents.

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TECHDIGEST – POS transactions in Nigeria jumped to N4.6 trillion in the first seven months of 2022, a 29.3% increase compared to N3.56 trillion recorded in the corresponding period of 2021 and a staggering 90.3% increase when compared to the same period of 2020.

This is according to data culled from the Nigeria Inter-Bank Settlement System (NIBSS) between January and July 2022. In the same vein, the volume of transactions rose by 25% year-on-year to 679.8 million in the same period from 543.7 million recorded in the previous year.

The increase in both the volume and value of POS transactions is an indication of how Nigerians are increasingly leaning away from cash payments in lieu of electronic transactions and reflects the growth of online shopping in Nigeria’s commercial space.

Notably, the volume and value of cheque transactions dropped in the same period. Specifically, a total of N1.83 trillion was recorded through cheques in the 7-month period across 2.4 million transactions a decline compared to the comparable period of 2021.

Highlights

In the month of July 2022, POS transactions stood at N724.7 billion, representing the highest monthly value on record based on data tracked since July 2022.

A further check of the historical data showed that the value of POS transactions in Nigeria has almost tripled compared to 2018 when the NIBSS began the release of the data. In the seven months period of 2018, a total of N1.2 trillion worth of transactions were recorded, rising to N1.66 trillion in 2019 before the covid-19 pandemic triggered a significant rise in 2020.

It is worth adding that the cumulative value of POS transactions recorded between January and July 2022, already represents 71.6% of the total N6.43 trillion recorded in the entire 2021.

Source: Nairametric

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TECH DIGEST– From N3.56 trillion in the first seven months of 2021 to N4.61 trillion in 2022, transactions processed by Point of Sales (PoS) terminals across Nigeria increased by N1.05 trillion. Nigeria Inter-Bank Settlement Systems reported  this (NIBSS)

At the same time, NIBSS disclosed that its Instant Payment platform handled transactions worth N204.5 trillion in Nigeria between January and July of this year (NIP).
In comparison to the N145.8 trillion recorded during the same period last year, this demonstrates a 40% growth in e-payments in the nation.

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The rise in electronic transactions indicates that more Nigerians are adopting the Central Bank of Nigeria’s cashless policy (CBN).

In 2011, NIBSS created the NIBSS Instant Payments (NIP), an account-number-based, real-time online Inter-Bank payment service.

It is the preferred cash transfer mechanism in the financial sector since it provides beneficiaries with immediate benefit.

A 31% increase from N22.4 trillion last year to N29.3 trillion this year was also seen in the July figures.

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TECHDIGEST – In the early days of mobile payment, payment processing providers offered banks and merchants free legacy hardware like Automated Teller machines, ATMs and Point of Sale, POS terminals to make their transactions easy.

These terminals only read the magstripe details of debit or credit cards and authenticate commands which helped complete transactions. They were later upgraded to reading chips embedded on payment cards when the world moved to Chip and Pin technology due to vulnerabilities and security breaches inherent in the Magstripe technology.

Despite the upgrades, ATM machines and POS terminals are often found to fail or delay services owing to network issues.

But in an omnichannel environment where consumers increasingly want more choice to pay the way they want to, the dynamic nature of the technology world would not only keep innovation a going concern, it will also keep payment processing technology ever-evolving. Consequently, the payment landscape has witnessed tech innovations like the Near Field Communications, NFC Technology which has also engendered innovations such as a tap on phone systems of payment. This innovation turns the mobile phone into a payment device, just by mere tapping of a payment card on it. It simplifies the payment process by removing steps, like swiping or inserting a credit card, which could create barriers to commerce or produce disjointed customer experiences.

Although these methods have long been in use in advanced countries, it is scarcely used or entirely nonexistent in most African countries.

However, a global payment and technology company, Mastercard, has just stepped in to bridge the gap. The payment giant says it is partnering with another leading enabler of digital commerce, Network International to introduce the Tap on Phone technology to payment transactions made on the Mastercard platforms across the Middle East and Africa.

The partnership targets 500,000 new merchants and SMEs who would accept payments through mobile phone, via Tap on Phone technology and thereby help in driving acceptance and innovation of digital payments across the region.

This will incidentally see to the end of POS terminals in Africa and considering the speedy penetration of mobile phones and the close attachment users have with their phones, it may not be surprising to see the terminals gradually vanishing from payment service points in the region.

The launch of Tap on Phone is part of Mastercard’s strategy to connect 50 million micro, small and medium-sized businesses, and 25 million women entrepreneurs globally to the digital economy by 2025 using its technology, network, expertise, and resources.

In support of the goal of building a more sustainable and inclusive digital economy, the company has pledged a whopping $250 million to the cause.

Senior Vice President, Head of Products, EEMEA, Mastercard, Gaurang Shah, said: “Small and medium-sized businesses are recognizing the potential of digitalization, and have identified digital payment acceptance among the top drivers for growth.

“They are crucial for systemic economic recovery, and by connecting more SMEs to digital commerce tools and affordable payment acceptance solutions, we are putting in place a strong foundation that can facilitate sustainable growth”

Also, Group Managing Director – Acquiring, Network International, Andrew Key, said: “Making sure that SMEs have all the support they need to go digital and grow digital is a key focus for Network International. As a leading enabler of commerce, we remain committed to connecting SMEs, the backbone of any economy, with innovative solutions that will drive wider acceptance across the region.

Tap on Phone powered by Mastercard Payment Gateway Services (MPGS), gives small and medium-sized businesses (SMEs) the ability to accept payments through a smartphone. Customers will simply tap their card or device to make the payment on the SME merchant’s phone, with each transaction processed through MPGS.

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