Explainer: Inside new CBN rule that pegged POS agents’ daily transaction to N1.2m
The Central Bank of Nigeria has capped daily cumulative transactions per agent at N1.2 million in the newly introduced operational guidelines for agent banking across the country. The revised framework, released on Monday, also mandated all financial institutions to submit monthly reports on the activities of their Point-of-Sale agents to enhance oversight and service quality. […]
The Central Bank of Nigeria has capped daily cumulative transactions per agent at N1.2 million in the newly introduced operational guidelines for agent banking across the country.
The revised framework, released on Monday, also mandated all financial institutions to submit monthly reports on the activities of their Point-of-Sale agents to enhance oversight and service quality.
The circular (PSP/DIR/CON/CWO/001/049), signed by the Director of the Payments System Management Department, Musa Jimoh, aims to strengthen financial stability, promote inclusion, and protect consumers.
The circular, addressed to all deposit money banks, other financial institutions, and payment service providers, takes immediate effect, while provisions on agent location and exclusivity will become effective from April 1, 2026.
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Daily Trust reports that PoS agents play a critical role in Nigeria’s cash economy.
The POS business first came into Nigeria in 2013, after the CBN led by Sanusi Lamido Sanusi, introduced the agent banking system with plans for a cashless economy.
The result paved the way for all financially related services to reach the public especially in unbanked regions of Nigeria.
According to reports, PoS terminals have grown and overtaken ATMs as the default option for many Nigerians. The IMF estimates there are 1,600 PoS operators per square kilometre in Nigeria.
By March 2025, there were 8.36 million registered PoS terminals, with 5.90 million active/deployed, a 119.46% rise from 2.69 million active terminals in March 2024.
PoS terminals recorded transaction of N10.51 trillion in the first quarter of 2025, a 301.67% increase from N2.62 trillion in Q1 2024, according to new data from the Nigeria Inter-Bank Settlement System (NIBSS).
In 2022, a CBN policy partially aimed to rein in high inflation and capped daily ATM and PoS withdrawals. This reduced currency in circulation from N3.01 trillion in December 2022 to N982.1 billion in February 2023, according to CBN data.
In the new restrictions, the apex bank gave guidelines on who can qualify to operate as PoS agents under its revised Guidelines for the Operations of Agent Banking in Nigeria, effectively barring individuals with unresolved debts, watch-listed Bank Verification Numbers (BVNs), or a history of financial misconduct from participating in the fast-growing agent banking sector.
The guidelines released on October 6, 2025, aim to tighten due diligence standards in an industry that has become critical to financial inclusion but is also plagued by fraud, over-concentration of risk, and weak oversight.
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 mis-conduct. Agents convicted of felonies, fraud, dishonesty, or related offences will also not be permitted to operate.
Under the new rules, there is exclusive partnership which means each PoS agent can now work with only one financial institution — either a bank or a fintech. Agents cannot serve multiple principals at the same time.
Dedicated account is also required. By this, all transactions must go through a special agent account or wallet created by the principal bank. Any operation outside this account is illegal and can lead to blacklisting or termination.
On transaction limits, CBN set new limits for PoS transactions:
N100,000 cash-out limit per customer daily and N500,000 cash-out limit weekly. N1.2 million total transaction limit per agent daily. For deposits and bill payments, the limit is N100,000 per transaction and N500,000 weekly.
There is stricter eligibility. Anyone under 18, those with unpaid loans, criminal records, or blacklisted BVNs cannot become agents. Businesses must show proof of registration, tax compliance, and enough capital to operate.
Real-time operations and fixed location; all PoS terminals must process transactions in real time and stay within their registered location. Moving or sharing devices without official approval is not allowed.
Mandatory training is also required for PoS agents. PoS agents must undergo training twice a year on topics such as customer service, fraud prevention, and financial literacy. This applies to both individuals and companies.
On Customer protection, agents must always give receipts for transactions, display their principal’s name and contact details, clearly show approved service charges and inform customers that services depend on fund availability.
Daily reporting – all transaction details — including withdrawals, balances, and limits — must be sent electronically to the Nigeria Interbank Settlement System (NIBSS), which will report them to the CBN.
Relocation rules – agents cannot move or close their business location without written notice and approval from their principal. A minimum of 30 days’ notice is required.
There are penalties for violations. Agents who break the rules may face fines ranging from N2 million to N20 million. Serious or repeated offences can result in suspension or loss of licence.
The apex bank warned that it reserves the right to demand additional information, carry out inspections, or exercise direct supervisory powers over any agent or financial institution at any time.
“The CBN may, in the event of a breach, invoke any or all sanctions against any defaulting participant in the agent banking system,” the circular read.