Explainer: Understanding POS rules for agents

Amid reports that POS operators have been restricted to one financial institution, the Central Bank of Nigeria (CBN) has clarified that its 2025 Agent Banking policy does not prevent merchants from using multiple POS terminals. The apex bank reaffirmed that platforms like OPay, Moniepoint, and Palmpay remain fully licensed, and merchants can choose their preferred […]

Amid reports that POS operators have been restricted to one financial institution, the Central Bank of Nigeria (CBN) has clarified that its 2025 Agent Banking policy does not prevent merchants from using multiple POS terminals.
The apex bank reaffirmed that platforms like OPay, Moniepoint, and Palmpay remain fully licensed, and merchants can choose their preferred service providers without restriction.
The recently updated 2025 Agent Banking Guidelines introduce exclusivity for registered agents — a move aimed at strengthening compliance, not restricting merchant flexibility.
This is contrary to claims circulating among operators suggesting that they can only transact with only one institution.
The apex bank said the revised Agent Banking Guidelines are directed solely at agent network operators, not at retailers or business owners accepting electronic payments.
A report by an online newspaper has said from April 1, 2026, POS agents in Nigeria will be restricted to working with only one principal, referencing the new guidelines issued by the Central Bank of Nigeria (CBN) on Monday, October 6, 2025.
It said while the exclusivity clause takes effect next year, all other provisions of the guidelines are immediately binding.
Daily Trust reports that the CBN said the new framework aims to “strengthen the enabling environment for offering safe financial services to the underbanked and remote areas in the country.” It also replaces all previous agent banking regulations, consolidating existing frameworks into a single document.

Key changes to agent banking operations
Agents will continue performing long-standing functions such as cash-in and cash-out transactions, naira fund transfers, and bill payments. They may also assist with account opening forms and submit them on behalf of their principals.
However, super agents — entities licensed to recruit, aggregate, and manage agents — are now prohibited from offering agent banking services directly. Principals will also have the discretion to determine which services their agents can offer, guided by internal risk assessment frameworks and the CBN’s operational standards.
The exclusivity rule applies not just to individual agents but also to super-agent networks, meaning agents can only belong to one super-agent at a time. However, super agents may still partner with multiple principals.

Stricter qualifications and operational requirements
The new framework introduces tougher eligibility and operating standards for agents. To qualify, individuals and businesses must have no non-performing loans within the 12 months preceding their application, must not be bankrupt or convicted of a felony, and must not have their Bank Verification Number (BVN) flagged or blacklisted.
In addition, agents are now required to operate at an agreed location defined as not lower than a kiosk. For non-individual agents such as petrol stations, restaurants, and retail outlets, operations must be restricted to their registered places of business.
The guidelines also include measures to promote competition and fairness. Principals cannot promote or favour any card brand and are required to ensure equal pricing and rewards for all customers and agents.
Furthermore, agent banking activities must be distinct from merchant transactions, with agents required to apply the agent code 6010 for all operations.

Role of payment terminal service aggregators
A new class of stakeholders — Payment Terminal Service Aggregators (PTSAs) — has been formally recognised. They are now responsible for registering POS terminals, facilitating their geo-location, and ensuring that devices deployed to agents are properly tracked.
This builds on the CBN’s August 2025 directive instructing all financial institutions to geotag their POS terminals as part of efforts to curb fraud and improve transparency in payment reporting.

Transaction limits and financial controls
Under the new guidelines, customers are subject to stricter transaction limits.
Cash-in, cash-out, and bill payments: N100,000 daily and N500,000 weekly.
Agent daily cash-out limit: N1.2 million.
While these thresholds are intended to manage liquidity and mitigate money laundering risks, some agents — especially those in high-traffic urban areas — may find the limits restrictive,.experts said.

Branding and penalties
The CBN also introduced clear branding and advertising rules for agents. All agent locations must be properly branded with the names and logos of both the principal and super agent (where applicable) and must display the list of services, applicable charges, and customer support contacts.
Agents are prohibited from using words such as “bank”, “finance”, or any term that may mislead the public into believing they are a financial institution.
Upon enforcement, the guidelines empower the CBN to impose sanctions on institutions and agents found in breach. This includes termination of agent agreements, blacklisting of agents or super agents, and direct inspections of systems and premises.
Principals that fail to comply with reporting or operational requirements may also face regulatory penalties or be barred from agent banking operations, according to the guidelines.