CBN Tightens Grip: POS Agents in Nigeria Face Single-Bank Restriction
The Central Bank of Nigeria (CBN) has announced significant changes to the regulations governing Point of Sale (POS) agents in the country, impacting how these critical players operate within the financial ecosystem. Effective April 1, 2026, POS agents will be limited to partnering with only one financial institution. This directive, detailed in new guidelines released on October 6, 2025, represents a considerable shift in the landscape of agent banking and POS operations in Nigeria. While the exclusivity clause has a future effective date, all other aspects of the guidelines are immediately enforceable.
New Guidelines Aim to Strengthen Financial Inclusion
The CBN’s revised framework consolidates previous agent banking regulations into a unified document, streamlining the regulatory environment. The primary objective, as stated by the CBN, is to “strengthen the enabling environment for offering safe financial services to the underbanked and remote areas in the country.” This move is particularly relevant in Nigeria, where a significant portion of the population lacks access to traditional banking services. POS agents are crucial in bridging this gap, providing essential financial services in underserved communities. Agents will still facilitate core functions, including cash deposits and withdrawals, money transfers in Naira, and bill payments. Additionally, they may assist customers with opening new accounts by completing and submitting the required forms to their principal financial institutions. However, the new regulations will bar super agents – entities that recruit, manage, and aggregate agents – from offering agent banking services as well. This aims to create a more organized and secure environment, while ensuring compliance with CBN standards.
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