CBN Caps PoS Agents’ Daily Transactions at ₦1.2 Million

The Central Bank of Nigeria (CBN) has rolled out a comprehensive reform for the country’s agent banking sector, setting a ₦1.2 million daily limit for PoS agents and a ₦100,000 daily transaction cap for individual customers.

The new directive, signed by Musa Jimoh, Director of the Payments System Policy Department, takes immediate effect and aims to strengthen financial integrity, prevent misuse, and protect consumers. However, some provisions, particularly those concerning agent location and exclusivity, will take effect from April 1, 2026.

The CBN explained that the new limits are designed to improve oversight and ensure safer transactions within the agent banking framework. It also stated that these thresholds could be reviewed periodically in line with its Guide to Charges for Banks and Other Financial Institutions in Nigeria.

Geo-Tagging and Location Control

A key part of the new regulation is the introduction of mandatory geo-tagging for all Point-of-Sale terminals. This measure requires every PoS device to be registered with precise location data, ensuring agents operate only from approved sites. The apex bank linked this move to the rising incidents of fraud in PoS operations and emphasized that geo-fencing will now restrict devices to their registered areas.

In August, the CBN directed that all PoS terminals be geo-tagged within 60 days, with a compliance deadline of October 20, 2025. The latest framework reinforces this requirement and extends it to all forms of agent banking operations.

Under the guidelines, agents are prohibited from relocating, transferring, or shutting down their business premises without formal approval from their principal or super agent. Any planned relocation must also be publicly displayed for at least 30 days before the move to inform customers.

To ensure transparency, all financial institutions acting as principals must maintain a dedicated account or wallet for their agents, while the use of personal or non-designated accounts for agent transactions is now forbidden. Offenders risk sanctions, termination, or being placed on an industry watchlist.

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Super agents, who manage multiple PoS agents, are now required to have at least 50 registered agents across Nigeria’s six geopolitical zones. This is intended to promote financial inclusion and ensure service availability in rural and underserved regions.

CBN Bars Debtors, Criminals, and Insolvent Agents

The new rules also set strict eligibility criteria for individuals or businesses seeking to operate as PoS agents. Anyone with a non-performing loan in the last 12 months will no longer qualify to serve as an agent, with the CBN relying on data from licensed credit bureaus to verify this information.

In addition, individuals with blacklisted Bank Verification Numbers (BVNs), or those found guilty of financial misconduct, fraud, or other criminal activities, are automatically barred. Persons declared bankrupt, as well as companies undergoing insolvency proceedings, are also ineligible to participate in agent banking.

Before onboarding new agents, banks, super agents, and payment service providers must conduct comprehensive background checks. This includes verifying an applicant’s credit history, criminal record, business address, and source of funds. Only individuals and entities that meet these standards and can demonstrate capacity to perform transactions such as deposits, withdrawals, and bill payments will be approved.

Eligible agents must be at least 18 years old, mentally sound, and financially stable.

The CBN emphasized that these reforms are part of its broader effort to strengthen the digital payment ecosystem and maintain trust in Nigeria’s financial inclusion drive. The measures signal a shift from mere transaction monitoring to deeper scrutiny of the people behind these operations, ensuring that only credible, financially responsible, and trustworthy individuals represent the face of PoS services across the country.