CBN Enforces New Rules Limiting POS Agents to One Financial Institution from 2026
3 min read
The Central Bank of Nigeria (CBN) has issued new regulations that will restrict Point-of-Sale (POS) agents in the country to working with only one financial institution starting April 1, 2026. The guidelines, released on October 6, 2025, aim to strengthen Nigeria’s financial inclusion framework while tightening oversight of agent banking operations.
According to the apex bank, the updated framework is designed to “strengthen the enabling environment for offering safe financial services to the underbanked and remote areas in the country.” It consolidates all previous agent banking regulations into one comprehensive document and takes immediate effect — except for the exclusivity clause, which will be enforced from 2026.
Under the new rules, agents will continue offering basic financial services such as cash deposits, withdrawals, bill payments, and funds transfers. They will also assist customers with account opening processes. However, the CBN now prohibits super agents those licensed to recruit and manage smaller agents from directly providing agent banking services. Principals will have the power to decide which services their agents can offer, guided by internal risk assessments and CBN standards.
A key highlight of the new regulation is the exclusivity clause, which mandates that agents and super agent networks can only work with one principal or network at a time. While agents must remain exclusive, super agents may still partner with multiple financial institutions.
The framework also introduces tougher qualification criteria for individuals or businesses seeking to become agents. Applicants must have no record of bad loans in the previous 12 months, must not be bankrupt or convicted of financial crimes, and must have a clean Bank Verification Number (BVN) record.
All agents are required to operate from fixed, approved locations no lower than a kiosk while larger businesses such as petrol stations or retail outlets must restrict operations to their registered business premises.
To promote fairness and transparency, the CBN’s guidelines prohibit principals from favouring any specific card brand or offering preferential pricing. All agents must display the names and logos of their principal and super agent, along with a visible list of services, charges, and customer care details.
A new stakeholder category, the Payment Terminal Service Aggregators (PTSAs), has also been introduced. These aggregators will register and track POS terminals, ensuring proper geo-location and compliance. This measure builds on the CBN’s August 2025 directive requiring all terminals to be geo-tagged to curb fraud and enhance monitoring.
The new policy also sets daily and weekly transaction limits to manage liquidity and reduce money laundering risks. Customers can only conduct up to ₦100,000 daily and ₦500,000 weekly in cash or bill payments, while agents are limited to ₦1.2 million in daily cash-out transactions.
Agents and institutions that violate the guidelines face strict penalties, including blacklisting, termination of agreements, and direct regulatory inspections. Financial institutions that fail to meet operational or reporting obligations may also face fines or suspension from agent banking activities.
With these measures, the CBN aims to bring greater accountability, standardization, and security to Nigeria’s agent banking ecosystem a sector that has become vital in extending financial services to millions of Nigerians in underserved areas.
About The Author
