The Central Bank of Nigeria (CBN) has rolled out comprehensive new operational guidelines for agent banking, imposing a daily transaction cap of ₦1.2 million per Point-of-Sale (POS) agent and limiting individual customers to ₦100,000 per day, as part of efforts to enhance financial integrity, prevent fraud, and promote a cashless economy.
The directive, detailed in a circular signed by Oladimeji Yisa Taiwo, Director of the Payments System Management Department, and released on Monday, October 6, aims to standardize operations, improve monitoring, and protect consumers in Nigeria’s rapidly expanding digital payment ecosystem.
It builds on prior reforms, including a July 2024 circular targeting POS compliance, amid rising concerns over misuse of agent networks for illicit activities like money laundering and unauthorized cash-outs.
Under the new rules, POS agents, key players in serving unbanked and rural populations face a cumulative daily cash-out limit of ₦1.2 million, while individual customers are restricted to ₦100,000 daily across deposits and withdrawals, with a weekly cap of ₦500,000.
“These limits are intended to curb misuse, enhance financial integrity, and protect consumers within the agent banking framework,” the CBN stated.
The apex bank reserves the right to review these thresholds periodically in line with its Guide to Charges for Banks and Other Financial Institutions.
To further safeguard against fraud, all agent devices, such as POS terminals, must now be geo-fenced to operate only within registered business locations, preventing unauthorized relocations or mobile misuse.
Agents are prohibited from transferring or closing premises without prior approval from their principal financial institution, and a 30-day notice must be displayed for customers.
Transactions must exclusively route through dedicated accounts or wallets maintained by principal banks, microfinance institutions, or mobile money operators, with violations attracting sanctions, including termination of agreements and placement on industry watchlists.
Financial institutions are mandated to submit detailed monthly reports to the CBN by the 10th of each succeeding month, covering transaction volumes and values, fraud incidents, customer complaints, active agent counts, and training programs.
“The monthly reports must include comprehensive data on the nature, value, and volume of transactions conducted by agents,” the guidelines specify, empowering the CBN to conduct inspections or demand additional information at any time.
The reforms come as agent banking has surged in popularity since the 2023 cash scarcity, with over 2 million POS operators facilitating billions in daily transactions and driving financial inclusion to 45% of adults.
However, the sector has faced scrutiny for enabling fraud, with stolen funds often laundered through anonymous cash-outs. By capping limits and enforcing geotagging, the CBN seeks to reduce the scale of such schemes, forcing more activity into traceable digital channels.If You’re Reading From Phoenix Click On Read Original at the top To Read Full Article
The CBN emphasized that these measures reaffirm its commitment to a secure, inclusive financial system, urging agents to demarcate services from merchant activities using the approved Agent Code 6010.