CBN Imposes N20 Million Penalty on PoS Operators for Unapproved Ownership Transfers

The Central Bank of Nigeria (CBN) has imposed a fine of N20 million on Point-of-Sale (PoS) agent banking operators who alter their ownership structure without securing prior regulatory approval. This sanction, introduced under the new Guidelines for the Operations of Agent Banking in Nigeria, is part of a broader effort to tighten oversight in the rapidly expanding agent banking industry.

According to a circular issued on October 6, 2025 (reference number PSP/DIR/CON/CWO/001/049), the apex bank stated that any change in ownership, acquisition, or merger involving Super Agents or related stakeholders must first be approved by the CBN. The guidelines, signed by Musa I. Jimoh, Director of the Payments System Policy Department, specify that violations will attract a minimum fine of N20 million, with an additional N500,000 penalty accruing daily until the breach is corrected.

While the guidelines take immediate effect, provisions related to agent location and exclusivity will come into force from April 1, 2026. The document also consolidates existing regulatory frameworks into a single comprehensive document for easier compliance and enforcement.

Comprehensive Sanctions for Non-Compliance
The new rules detail a wide range of penalties for various violations within the agent banking ecosystem. Entities operating without a valid Super Agent license face fines of at least N10 million, with an extra N200,000 for each day the offence continues. Operators engaging in non-permissible agent banking activities could pay fines starting from N5 million, along with daily penalties of N100,000, and may be forced to forfeit profits earned from such activities.

Institutions that fail to follow branding or advertising rules risk fines of at least N2 million, in addition to a daily penalty of N50,000. Similarly, those neglecting to obtain the required CBN approval or a “No Objection Letter” will face a N2 million fine per financial institution and the same amount for each responsible director or senior management official.

Financial institutions that delay submission of required reports to the CBN will be fined N2 million plus N250,000 for each day of delay. Providing false or inaccurate information to the apex bank attracts a minimum fine of N5 million and could result in the suspension or removal of directors involved.

Accounting, AML, and Branding Violations
Institutions that fail to maintain proper accounting records will pay a minimum fine of N5 million. Where the breach is found to be deliberate, the responsible officer will be fined an additional N2 million. Not responding to CBN information requests in the prescribed format and timeframe may lead to fines of up to N5 million and N100,000 per day until compliance is achieved.

Changing a company name, corporate identity, or logo without regulatory approval will attract a fine of at least N5 million, a mandatory reversion to the approved name, and a daily penalty of N100,000 for continued non-compliance.

In addition, violations of Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Countering Proliferation Financing (CPF) laws will incur a N10 million fine for the financial institution and N2 million for each board member involved. The CBN noted that further penalties could apply under the 2018 AML/CFT/CPF administrative sanctions framework.

Fraud Control and Equipment Compliance
The CBN also emphasized that financial institutions must assist law enforcement agencies in investigating and prosecuting fraud cases. Any agent implicated in fraud must be immediately suspended by the principal institution and blacklisted if found guilty.

Furthermore, principals and Super Agents that fail to implement control measures such as geo-locking of agent banking equipment will face fines starting at N5 million, with an additional N300,000 daily penalty until full compliance is achieved.

By imposing these revised sanctions, the CBN aims to enforce stronger accountability, operational discipline, and consumer protection within Nigeria’s agent banking and fintech ecosystem.