CBN Issues New Guidelines For Agent Banking, POS Operations, Effective from April
The Central Bank of Nigeria (CBN) has announced new regulatory guidelines for agent banking and Point of Sale (POS) operations across the country, with key provisions set to take effect from April 1, 2026. The new rules are designed to strengthen consumer protection, enhance transparency, and curb fraud in the fast-growing agent banking sector.
According to the circular referenced PSP/DIR/CON/CWO/001/049, the apex bank stated that the updated framework seeks to ensure that all financial service providers, including banks and mobile money operators, maintain tighter oversight of their agent networks and adhere to strict operational standards.
Under the new directive, daily cash-in and cash-out transactions for customers are capped at ₦100,000, while agents are limited to a total daily transaction ceiling of ₦1.2 million. The CBN explained that this measure aims to control excessive cash circulation and reduce risks associated with money laundering and fraud.
The guidelines also mandate that all agent transactions must be conducted through designated accounts or wallets provided by the principal financial institution. Any use of non-designated accounts is now prohibited and may attract sanctions or termination of the agent’s contract.
Additionally, the CBN directed that all POS and agent devices be geo-tagged and locked to their registered locations, preventing them from being used elsewhere without proper authorization. This move is intended to check mobile or unauthorized operations and improve regulatory visibility.
To enhance service efficiency, financial institutions are required to ensure real-time transaction processing and instant reversals in the event of failed transactions. Monthly performance and compliance reports must also be submitted to the CBN by the 10th of every month.
The apex bank further emphasized the need for transparency, directing financial institutions to publish and regularly update a public list of all registered agents. Audit trails and transaction records must be maintained for at least five years.
While the guidelines take immediate effect for transaction limits and compliance processes, certain provisions particularly those concerning agent location and exclusivity rules will come into full force from April 1, 2026, allowing stakeholders time to adapt.
Industry experts have welcomed the move, describing it as a timely intervention that will restore public confidence in the POS and agent banking sector, which has seen a rise in fraudulent activities and customer disputes in recent years.
The CBN reiterated its commitment to promoting financial inclusion while ensuring the stability and integrity of Nigeria’s payment system.
