CBN Limits PoS Agents’ Daily Transactions to N1.2m

The Central Bank of Nigeria (CBN) has capped daily cash-out transactions for Point of Sale (POS) agents at N1.2 million and N100,000 for individual customers.

The regulation for operators comes under a new set of guidelines released to regulate agent banking operations across the country.

The circular, signed by the Director of the Payments System Policy Department, Musa Jimoh, was addressed to all deposit money banks, other financial institutions, and payment service providers.

The new framework will take immediate effect, while provisions relating to agent location and exclusivity will become effective from April 1, 2026.

“POS agents are restricted to a maximum of N1.2 million per day. Individual customers are limited to N100,000 in daily transactions.

“These limits are intended to curb misuse, enhance financial integrity, and protect consumers within the agent banking framework,” it stated.

The guidelines also noted that the “CBN may vary or amend the transaction limits specified from time to time for each service in line with the extant CBN Guide to Charges for Banks and Other Financial Institutions in Nigeria.”

The CBN’s new framework mandated that all agent banking transactions must be conducted through a dedicated account or wallet maintained by the principal financial institution, adding that use of non-designated accounts for agent operations is now prohibited, and violations will attract sanctions.

It noted that agents found guilty of fraud, misconduct, or other offences will be personally liable and may face termination or placement on an industry watchlist.

Under the new framework, the financial institutions, referred to as “principals,” are expected to publish and regularly update the list of their agents on their official websites and display the same in their branches.

The guidelines require that super agents, who are only authorised to manage other agents, operate with at least 50 agents spread across Nigeria’s six geopolitical zones, to ensure wider access to financial services in rural and underserved areas.

The guideline also prohibited agents from relocating, transferring, or closing their business premises without written approval from their principals or super agents, adding that any relocation notice must be posted visibly at the business premises for at least 30 days to notify customers.

The CBN directed that all agent banking devices must be geo-fenced, restricting their operations strictly to registered locations.

This comes after the bank issued a directive on August 25 requiring all PoS terminals to be geo-tagged within 60 days, effective August 26, 2025, with a compliance deadline of October 20, 2025.

The move, according to the CBN, was prompted by rising cases of fraudulent PoS transactions across the country.

Geo-tagging is the process of adding geographic identification metadata, such as latitude and longitude, to digital content like photos, videos, websites, and SMS messages. This embedded location data allows content to be displayed on a map and correlated with other location-based information, enabling users to find items by location, track assets, or simply share their whereabouts.

The new rules mark a significant tightening of Nigeria’s agent banking framework, moving beyond transaction monitoring to focus on the integrity of the individuals who operate at the last mile of financial inclusion.

Under the new rules, any person or entity with a non-performing loan with any financial institution in the last 12 months is ineligible to be appointed as an agent. The CBN said credit information would be verified through licensed credit bureaus, closing loopholes that have allowed individuals with bad debts to resurface as PoS operators.

Also disqualified are individuals whose BVNs have been watch-listed, as well as anyone who has been blacklisted for financial misconduct. Agents convicted of felonies, fraud, dishonesty, or related offences will also not be permitted to operate.

In addition, persons declared bankrupt or companies that have filed for insolvency are automatically barred from agent banking, reinforcing the regulator’s stance that only financially stable and trustworthy actors can hold such positions.

For those seeking approval, the guidelines stipulate basic eligibility conditions. Prospective agents must demonstrate the ability to carry out permissible activities such as deposits, withdrawals, and bill payments. They must also provide all mandatory information required under CBN regulations, secure authorisations from relevant authorities where necessary, and, in the case of individuals, be at least 18 years old and of sound mind.

The central bank also mandated that principals — banks, super agents, and licensed payment service providers — conduct comprehensive due diligence before appointing agents. This includes verifying credit history, criminal records, sources of funds, business addresses, and pre-existing relationships that could pose risks.