By Ayomide Otitoju
The Central Bank of Nigeria (CBN) has introduced new restrictions on Point of Sale (POS) transactions, capping daily cash-out limits at N1.2 million for agents and N100,000 for individual customers.
The new directive, outlined in a circular signed by Musa Jimoh, Director of the Payments System Policy Department, was addressed to deposit money banks, other financial institutions, and payment service providers. The framework takes immediate effect, while rules relating to agent location and exclusivity will come into force on April 1, 2026.
“These limits are intended to curb misuse, enhance financial integrity, and protect consumers within the agent banking framework,” the CBN stated, adding that it reserves the right to review the limits as necessary.
Under the new guidelines, all agent banking transactions must be conducted through a dedicated account or wallet maintained by the agent’s principal financial institution. The use of non-designated accounts is prohibited and will attract sanctions. Agents found guilty of fraud, misconduct, or other offences will be personally liable and may face termination or blacklisting within the industry.
The framework also directs banks and super agents — referred to as “principals” — to publish and regularly update the list of their agents on their official websites and display the same in their branches. Super agents are required to manage at least 50 sub-agents across Nigeria’s six geopolitical zones to ensure wider financial inclusion.
Agents are now barred from relocating, transferring, or closing their business premises without written approval from their principals. Any relocation notice must be displayed for at least 30 days at the business location to inform customers.
In addition, all POS devices must be geo-fenced, restricting operations strictly to registered locations. This aligns with the CBN’s August 25 directive mandating the geo-tagging of all POS terminals within 60 days, by October 20, 2025, to combat rising cases of fraudulent transactions.
The CBN further tightened eligibility criteria for POS agents. Individuals or entities with non-performing loans in the past 12 months, blacklisted BVNs, or records of financial misconduct are disqualified from operating. Those convicted of fraud, dishonesty, or felonies, as well as bankrupt individuals or insolvent companies, are also barred.
Prospective agents must demonstrate capacity to carry out basic financial services such as deposits, withdrawals, and bill payments while meeting all regulatory and documentation requirements. Principals are mandated to perform comprehensive due diligence, including checks on credit history, criminal records, and sources of funds, before appointment.
The new rules represent a major overhaul of Nigeria’s agent banking framework, aimed at strengthening oversight, protecting consumers, and promoting integrity in last-mile financial services.
