The Central Bank of Nigeria’s new operational guidelines for agent banking have triggered widespread concern among Point-of-Sale operators, who warn that nearly 40 per cent of agents could be forced out of business.
The president of the Association of Mobile Money and Bank Agents of Nigeria, Fasasi Sharafadeen, said the new framework released by the apex bank could cripple small-scale PoS operations and weaken Nigeria’s financial inclusion drive.
Under the revised policy, the CBN has capped daily cumulative transactions per PoS agent at ₦1.2 million and limited individual customer transactions to ₦100,000. The bank also directed that all transactions must be routed through dedicated accounts or wallets managed by the agents’ principal financial institutions to improve transparency.
In addition, the guidelines restrict agents to operating under a single financial service provider — a move described by operators as “anti-competitive” and “business-killing.”
Sharafadeen warned that this “exclusivity rule” would strip agents of flexibility and reduce customer satisfaction, explaining that many PoS operators currently use multiple platforms to handle network downtime or offer different service incentives.
“About 40 per cent of agents will go out of business if this stands,” he said. “Most of us rely on using more than one platform to serve customers efficiently. If you take that away, you destroy what makes agency banking work.”
He added that the new 10-metre geofencing requirement for agent locations could further compound the problem, especially in rural areas where access to financial services is already limited.
The association also criticised the prohibition of certain services, such as account opening and card issuance — activities that many operators depend on for additional income. “These are major revenue streams for agents,” Sharafadeen noted. “Taking them away will leave thousands in losses.”
However, economists are divided on the CBN’s move. Former CBN Director, Professor Akpan Ekpo, believes the policy may have good intentions, such as improving security and tracking transactions, but called for better implementation. “Before PoS came, businesses survived through banks. But the CBN must ensure that ATMs work effectively if they want this to succeed,” he said.
Also, Dr. Olawale Ajayi of the Lagos Business School said the policy could strengthen financial accountability if well executed, noting that linking agents’ BVNs and tax numbers could help curb fraud.
But other analysts, like the National Chairman of the Progressive Shareholders Association, Boniface Okezie, accused the CBN of overregulation. “The apex bank should focus on its core duties, not micromanage small operators,” he argued.
While the CBN insists the guidelines are meant to strengthen the agent banking system, industry stakeholders are urging the bank to revisit the policy before it takes effect in April 2026 — warning that if not reviewed, it could lead to mass closures and job losses across the PoS sector.
