A new policy of the Central Bank of Nigeria on agent banking may push about 40 per cent Point-of-Sale operators out of business.
The National President of the Association of Mobile Money and Bank Agents of Nigeria, Fasasi Sharafadeen, toldย Sunday PUNCHย that the recently released guidelines by the apex bank could cripple small-scale businesses and threaten the countryโs financial inclusion efforts.
The CBN released new operational guidelines for agent banking, capping the daily cumulative transactions per PoS agent at N1.2m.
Under the new framework, all agent banking transactions must be conducted through a dedicated account or wallet maintained by the principal financial institution to ensure transparency and better oversight.
The CBN warned that any agent found using non-designated accounts for operations would be in violation of the regulation and would face sanctions.
Agents involved in misconduct or fraud will be blacklisted or have their agreements terminated.
The framework further limits individual customer transactions to N100,000 daily, while agent devices must be geo-fenced to prevent unauthorised mobile use.
The CBN announced that implementation of the new agent location and exclusivity rules would begin on April 1, 2026.
According to Sharafadeen, one of the most worrying aspects of the policy is the introduction of exclusivity, which restricts agents to operate under only one principal or service provider.
He explained that this move would not only reduce the income of PoS agents but also drive many out of business due to the loss of flexibility and customer trust that currently defines agency banking operations.
โAbout 40 per cent of PoS operators will be out of business,โ he said. โToday, there are over 3 million PoS terminals in circulation, and about two million active agents. Many of these agents operate multiple terminals from different service providers to ensure efficiency and customer satisfaction. The new exclusivity rule will destroy that balance.โ
He added that PoS operators usually relied on multiple platforms to ensure steady transactions when one network fails.
โSome agents choose a particular provider because of incentives like free bank transfers, while they use another provider that is faster in withdrawals,โ he explained. โThis mix guarantees customer experience because even when one service is down, they can still serve their customers through another provider.โ
The association president noted that the CBNโs argument for introducing exclusivity to enable easier monitoring and sanctioning of providers in cases of fraud, overlooks the realities of informal sector operations.
โThe central bank may have good intentions of ensuring a safe and sound financial environment, but the implementation process is faulty,โ he said.
โThey did not consult stakeholders in the informal sector. Agency banking is not owned by the big service providers; it is driven by small business owners who finance their own operations.โ
He further criticised the proposed 10-metre geofencing requirement for agent locations, describing it as impractical and counterproductive.
He argued that the new rule could lead to massive shutdowns across agent locations, especially in rural areas where banking services are limited.
The association also expressed concern over other provisions in the CBN policy, including non-permissible services that restrict agents from opening accounts or issuing cards, services that currently form a major source of income for operators.
โA lot of agents make more money from account opening and card issuance than from cash-in, cash-out services. By removing these, the CBN is taking away alternative income sources and pushing operators into losses,โ he said.
The association called on the apex bank to revisit the guidelines, noting that its objectives could still be achieved without policies that stifle operators.
