A new directive from the Central Bank of Nigeria (CBN) on agent banking could force about 40 per cent of Point-of-Sale (PoS) operators out of business, according to industry stakeholders.
The National President of the Association of Mobile Money and Bank Agents of Nigeria (AMMBAN), Fasasi Sharafadeen, told Sunday PUNCH that the new guidelines introduced by the apex bank would stifle small-scale operators and undermine Nigeria’s financial inclusion goals.
Under the new policy, the CBN has set a ₦1.2 million daily transaction limit for each PoS agent and mandated that all operations be carried out through a dedicated account or wallet managed by their principal financial institution. The bank warned that any agent using non-designated accounts would face sanctions, including blacklisting or termination of agreements.
In addition, individual customer transactions are now capped at ₦100,000 per day, and PoS devices must be geo-fenced to specific locations to prevent mobile misuse. The implementation of the new rules is scheduled to begin on April 1, 2026.
Agents Decry ‘Exclusivity’ Rule
Sharafadeen expressed deep concern about the new exclusivity clause, which restricts agents to operating under only one principal or service provider.
“About 40 per cent of PoS operators will be out of business,” he warned. “Many agents use multiple terminals from different providers to ensure service continuity and customer satisfaction. This new rule will destroy that flexibility.”
He noted that most agents depend on various service providers to maintain stable operations when one network fails, adding that such flexibility guarantees better customer experience.
“The CBN may mean well, but the implementation process is flawed,” Sharafadeen said. “They did not engage stakeholders in the informal sector, who are the real drivers of agency banking.”
He also criticised the 10-metre geofencing requirement, calling it impractical, especially for rural areas where banking access is limited.
According to him, the restrictions on services like account opening and card issuance—which are major income sources for agents—could further worsen operators’ financial strain.
Fintech Operators May Exit the Market
Sharafadeen further warned that the exclusivity rule could hand market dominance to a few major fintech firms.
“There are over 200 agent banking providers in Nigeria, but just about five control over 70 per cent of the agents,” he said. “The new rules will make it difficult for smaller fintech companies to survive.”
PoS Operators Express Frustration
Several PoS operators told Sunday PUNCH that the new policy would cripple their businesses.
A Lagos-based agent, Oluwatobi, said the daily transaction cap would reduce his earnings.
“I make around ₦15,000 a day from PoS operations. Sometimes, I handle over ₦1.2m in cash withdrawals daily. This policy will seriously affect my savings,” he lamented.
Another operator, Akiyemi Olabode from Ikeja, said the restrictions would hurt small business owners who depend on PoS income.
“I have three PoS terminals. With this limit, it will be tough to meet customers’ demands or even stay in business,” he said.
Similarly, Grace, a female agent, described the policy as “anti-business.”
“Most of us use this to support our families. Market women withdraw in bulk to buy goods. With these limits, I’ll lose customers and income,” she said.
The operators appealed to the CBN to review the policy and adopt a more flexible framework that reflects the realities of cash flow in rural and semi-urban areas.
Economists React
A former CBN Director and economist, Professor Akpan Ekpo, said the apex bank should prioritise improving ATM functionality across the country.
“Before PoS came, people used banks directly. The CBN should ensure ATMs work efficiently,” he said.
He added that while the policy might enhance security and transaction traceability, its success would depend on effective monitoring.
Also, Dr. Olawale Ajayi, Head of Strategy at Lagos Business School, said the policy could strengthen accountability if implemented properly.
“Linking agents’ BVNs and Tax Identification Numbers will help curb fraud and impersonation,” he noted.
However, Boniface Okezie, National Chairman of the Progressive Shareholders Association of Nigeria, faulted the CBN for excessive regulation.
“They should give broad guidelines, not micromanage small businesses,” he said. “The CBN should focus on ensuring clean currency circulation and functional banks.”
Background
The CBN recently unveiled revised agent banking guidelines introducing stricter operational requirements, due diligence processes, and limits for agents.
According to the apex bank, the move aims to strengthen the integrity of Nigeria’s financial system and promote financial inclusion, though many in the industry fear it may achieve the opposite.
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