Nigeria’s vast network of two million banking agents, who currently juggle multiple Point of Sale (PoS) terminals from providers such as Moniepoint, OPay, and PalmPay, are facing a major shift. Beginning April 1, 2026, the Central Bank of Nigeria (CBN) will require all PoS agents to align exclusively with a single principal-whether that be a bank, mobile money operator, microfinance bank, or payment service bank-under newly introduced agent banking regulations.
These comprehensive reforms, announced on October 6, 2025, mark the most significant overhaul in Nigeria’s agent banking sector since its launch in 2013. The CBN aims to set clear operational standards, enhance financial inclusion by elevating service quality, and foster ethical conduct within the market.
Traditionally, PoS agents have served customers across multiple financial platforms simultaneously. The new directive, however, mandates exclusivity, limiting agents to a single principal or a licensed super agent. This change is designed to simplify regulatory oversight and improve accountability.
To facilitate enforcement, all principals-including banks and fintech firms-must maintain and publicly share an updated list of their agents with exact locations on their official websites. This transparency supports the implementation of a daily withdrawal limit of ₦1.2 million (around $816) and ensures agents operate strictly within their assigned geographic zones, as the CBN intensifies monitoring of this rapidly growing sector.
Principals are also required to distinctly separate agent banking transactions from merchant activities and closely monitor agents’ Bank Verification Numbers (BVNs) to prevent unauthorized use beyond approved accounts and limits. Agents must maintain comprehensive transaction records and promptly report any suspicious behavior to their principals. Notably, the CBN now reserves the right to directly request transaction data from agents, bypassing principals if necessary.
The sector has a six-month grace period to comply with these new rules, a transition expected to reshape how financial services are distributed across Nigeria’s urban and rural communities, affecting millions of daily cash transactions.
Furthermore, all agent transactions must be routed through a dedicated agent account or wallet held with their principal institution. Any transactions conducted outside this designated account will be deemed non-compliant, potentially leading to sanctions such as contract termination, blacklisting, or legal proceedings.
Over the last ten years, Nigeria’s agent banking ecosystem has expanded rapidly, driven largely by fintech pioneers like Moniepoint, OPay, and PalmPay. As of March 2025, the country recorded 8.36 million registered PoS terminals, with 5.90 million actively in use.
Transaction values hit an unprecedented ₦10.51 trillion ($7.15 billion) in Q1 2025, reflecting a staggering 301.67% increase compared to the same quarter in 2024. This surge highlights the critical role agents play as the main channel for cash transactions. However, this growth coincides with inflationary challenges, as the CBN continues efforts to stabilize the economy. Currency outside formal banking channels reached ₦4.45 trillion ($3.03 billion) in August 2025, while inflation was recorded at 20.12%.
This regulatory update is part of a wider reform agenda, which includes ongoing system upgrades and geo-fencing measures to track agent locations. The CBN stresses that these initiatives are vital to preserving the stability and integrity of Nigeria’s financial infrastructure.
Exchange rate applied: ₦1,470.26 to $1
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