•CBN Governor Olayemi Cardoso
The Central Bank of Nigeria (CBN) has rolled out sweeping new restrictions on who can qualify to operate as Point of Sale (PoS) agents, in what industry watchers describe as a major effort to restore integrity, accountability, and stability to Nigeria’s fast-growing agent banking sector.
Under the revised Guidelines for the Operations of Agent Banking in Nigeria, issued on October 6, 2025, the apex bank has effectively barred individuals and entities with a history of financial misconduct, bad loans, or compromised Bank Verification Numbers (BVNs) from operating as agents.
The move marks one of the most stringent regulatory overhauls since the introduction of agent banking in 2013 — a system that has since grown into a multitrillion-naira industry underpinning Nigeria’s financial inclusion drive, reports Daily Independent.
No More Safe Haven for Defaulters
The new rules are unambiguous: anyone with a non-performing loan in the last 12 months, or whose credit history shows unresolved debt obligations with any financial institution, will be ineligible to operate as an agent.
The CBN said all credit information will now be verified through licensed credit bureaus, closing long-standing loopholes that allowed loan defaulters to re-emerge in the PoS ecosystem under new identities or different business names.
Similarly, individuals whose BVNs are watch-listed for fraud or other financial infractions, as well as anyone convicted of felonies or dishonesty-related offences, are automatically disqualified.
“The integrity of the agent is critical to the safety and trust of Nigeria’s financial system,” the CBN stated in the document. “Agents must be persons or entities of sound character and financial standing.”
The apex bank also barred persons declared bankrupt or companies that have filed for insolvency from participating in agent banking — underscoring its resolve to ensure that only financially stable and trustworthy actors can operate within the network.
Raising the Bar on Eligibility and Due Diligence
Beyond disqualifications, the guidelines also outline the minimum eligibility criteria for prospective agents. Individuals must be at least 18 years old, of sound mind, and demonstrate the capacity to perform permissible activities such as deposits, withdrawals, and bill payments.
Applicants are required to provide all mandatory information under CBN’s Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, while institutions must secure necessary approvals from relevant authorities before engaging agents.
In what analysts say is a shift from “volume to value,” the CBN has placed heavy responsibility on principals — banks, super agents, and licensed payment service providers — to conduct comprehensive background checks before appointing agents.
These due diligence measures now include verifying the agent’s credit history, criminal records, sources of funds, physical business addresses, and any existing relationships that may pose operational or reputational risks.
A senior compliance officer at a top-tier bank, who spoke on condition of anonymity, said: “This new directive raises the compliance cost, no doubt. But, it’s a necessary step. We’ve seen too many fraudulent PoS operators exploiting regulatory gaps. The CBN wants to ensure that only credible people are handling customer funds.”
A Booming Industry Facing a Trust Crisis
Nigeria’s agent banking industry has witnessed exponential growth in the past five years, driven largely by PoS operators who bridge the gap between banks and the unbanked population.
As of March 2025, there were over 8.3 million registered PoS terminals across the country, with 5.9 million already deployed, handling transactions worth hundreds of billions of naira monthly.
These agents have become indispensable to financial inclusion — providing deposit, withdrawal, transfer, and bill payment services in rural and semi-urban communities where banks are scarce.
However, the sector’s rapid expansion has also brought significant risks. Rising cases of fraud, unauthorised deductions, theft, and unlicensed operators have eroded public trust.
According to industry reports, fraud cases linked to PoS operations rose by nearly 30 percent in 2024, while customer complaints to banks and the CBN surged.
For the CBN, the tightening of agent eligibility marks a decisive move to restore confidence and safeguard customers. By cutting off access for bad debtors and those with compromised identities, the apex bank hopes to stem the tide of fraud that has tarnished the reputation of the PoS business.
Compliance Burden for Operators
While the policy has been widely praised for its intent, it poses significant operational challenges for banks and payment service providers.
Industry operators now face the added burden of integrating credit bureau checks, BVN verification, and criminal background screening into their onboarding processes — a development expected to increase costs and slow down agent recruitment.
A fintech executive familiar with the CBN’s directive noted that while the new measures will enhance accountability, smaller players may struggle to keep up.
“The compliance requirements are quite demanding. For large banks and super agents, this is manageable, but for small fintechs, it could mean higher costs and fewer new agents. Some may need to overhaul their entire onboarding systems,” the executive said.
Part of Broader Reforms
The revised guidelines form part of a broader wave of reforms the CBN has been rolling out to sanitize the payment ecosystem.
In August 2025, the regulator directed all operators to geo-tag their PoS devices within 60 days and align their systems with the ISO 20022 global messaging standard, a move aimed at improving transaction traceability and interoperability.
That directive, analysts now say, was a precursor to the October 2025 tightening. The latest guidelines not only formalize those rules but also embed stricter sanctions, transaction limits, and real-time settlement requirements for improved transparency.
However, the CBN has slightly extended the compliance deadline to April 1, 2026, giving operators more time to align.
“The extension is not a reprieve,” one payment system consultant said.
“It’s a grace period. Come April 2026, any PoS terminal that isn’t geo-locked or compliant with the new verification standards risks being deactivated, and the responsible institutions could face heavy fines.”
A Signal of Renewed Regulatory Vigilance
The CBN’s move comes amid a broader push by the Cardoso-led management to tighten financial oversight, strengthen confidence in digital payments, and ensure that the drive for inclusion does not come at the cost of integrity.
Analysts see the guidelines as a continuation of the central bank’s post-reform agenda — one that seeks to balance innovation with prudence.
Dr. Johnson Nnaji, a financial inclusion expert, said the new guidelines “reflect a maturity phase” in Nigeria’s digital finance ecosystem.
“The first decade of agent banking was about growth — onboarding as many agents as possible. The next decade will be about governance — ensuring those agents operate with credibility and responsibility. The CBN is simply raising the standard,” he said.
Bottom Line
With over 5 million PoS agents serving as the face of financial access for millions of Nigerians, the CBN’s latest measures are both corrective and preventive.
By tightening eligibility, mandating deeper due diligence, and linking compliance to credit and identity databases, the regulator is signaling a shift toward a cleaner, safer, and more accountable agent banking ecosystem.
But as the April 2026 enforcement deadline looms, the real test will be in implementation — whether operators can meet the new standards without disrupting financial access for the underserved communities that depend on them daily.
In the words of one Lagos-based PoS operator:
“The rules are tough, but maybe it’s time. Too many bad eggs have spoiled the business for honest people like us. If the CBN cleans it up properly, everyone will benefit in the long run.”
