The Central Bank of Nigeria (CBN) has introduced fresh guidelines to regulate the operations of agent banking in the country, including imposing a daily transaction limit of ₦1.2 million per agent.
These regulations aim to boost transparency, mitigate risks, and enhance the security of agent banking services.
Under the new rules, Point of Sale (POS) agents are restricted to a maximum daily transaction value of ₦1.2 million. Additionally, individual customers are capped at ₦100,000 in daily transactions through agents to curb fraud and ensure better control of cash flows.
The guidelines specify that every agent must operate with dedicated agent accounts, and principals—the banks or financial institutions backing the agents—are responsible for conducting due diligence and risk assessments. Agents are only allowed to work with one principal and one super agent at a time to maintain accountability and focus.
Some key permissible activities outlined include facilitating deposits, withdrawals, bill payments, funds transfers (within Nigeria), account inquiries, issuance of mini bank statements, and account opening assistance on behalf of principals.
Non-permissible activities include loan underwriting, investment services, forex trading, and delegation of agent activities to third parties. The CBN also forbids the use of automated machines as agents, emphasizing human oversight.
Compliance monitoring will be rigorous, requiring principals to submit monthly returns about transaction volumes, fraud incidents, customer complaints, and breaches.
Devices used by agents must be geo-fenced to operate only within agreed locations.
The CBN’s guidelines underscore its commitment to safeguarding financial transactions, protecting consumers, and ensuring the sustainable growth of agent banking, which plays a crucial role in extending financial inclusion to underserved communities.
This regulatory framework reflects CBN’s proactive approach in adapting to the increasing use of technology-driven financial services while minimizing associated risks.
The phased enforcement of these guidelines is expected to bring increased confidence in agent banking services and stability to Nigeria’s digital financial ecosystem.
