(DDM) – The Central Bank of Nigeria (CBN) has rolled out a comprehensive new framework for agent banking operations across the country, introducing fresh compliance standards, consumer protection measures, and a daily cash-out ceiling of ₦1.2 million per agent.
Diaspora Digital Media (DDM) gathered that the circular, signed by Musa Jimoh, Director of the CBN’s Payments System Policy Department, takes immediate effect for most provisions, while regulations on agent location and exclusivity will become enforceable from April 1, 2026.
According to the apex bank, the revised guidelines are designed to enhance service quality, promote financial inclusion, and safeguard the stability of Nigeria’s financial system.
Agent banking, as defined by the CBN, involves licensed financial institutions or mobile money operators engaging third-party agents to deliver services such as deposits, withdrawals, bill payments, and account opening on their behalf.
Under the new policy, all agent banking transactions must be conducted through designated accounts or wallets maintained by the principal financial institution to ensure transparency and traceability.
The bank prohibited the use of non-designated accounts for agent operations, warning that violations would attract strict sanctions.
Agents found guilty of misconduct, fraud, or non-compliance will face termination, personal liability, or placement on industry watchlists.
Furthermore, all financial institutions, referred to as “principals”, are required to publish and regularly update the list of their registered agents on their official websites.
Each bank branch must also display a current list of approved agents operating within its locality to improve accountability and visibility
Super agents, according to the guidelines, must maintain at least 50 agents distributed across Nigeria’s six geopolitical zones, to ensure broader service access in underserved communities.
The CBN also mandated that no agent may relocate, transfer, or close its business premises without prior written approval from its principal or super agent.
Relocation notices must be clearly displayed at the business premises for at least 30 days to inform customers in advance.
To strengthen consumer protection, the apex bank emphasized that all agent transactions must now occur in real-time, using secure and interoperable payment systems.
Banks and payment providers are to deploy technologies that guarantee instant settlements, automatic reversals for failed transactions, and real-time monitoring to prevent agents from exceeding prescribed limits.
Transaction receipts must include the agent’s name, location coordinates, and timestamp, while all transaction records must be preserved for a minimum of five years for audit and regulatory purposes.
The new rules also stipulate that each agent’s daily cumulative cash-out limit shall not exceed ₦1.2 million, though the CBN reserves the right to adjust this limit periodically under its Guide to Bank Charges framework.
Additionally, all devices deployed for agent banking are to be geo-fenced, restricted to operate only within registered agent locations, to curb mobile or unauthorized operations elsewhere.
In its enforcement section, the circular mandates that financial institutions submit detailed monthly reports to the CBN by the 10th of every month, covering transaction data, fraud cases, active agent numbers, customer complaints, and training records.
The CBN reaffirmed its authority to demand extra information, conduct direct inspections, and apply sanctions ranging from suspension of new agent onboarding to full licence revocation for repeated breaches.
Institutions that flout these rules risk blacklisting, management removal, or regulatory restrictions if their agents persistently violate the framework.
“The CBN may, in the event of a breach, invoke any or all sanctions against any defaulting participant in the agent banking system,” the circular warned.
Analysts say the updated guidelines reflect the apex bank’s determination to tighten oversight of Nigeria’s fast-growing financial inclusion ecosystem, where agent networks play a vital role in bridging access gaps, particularly in rural and semi-urban communities.
Over the past five years, Nigeria’s agent banking sector has expanded rapidly, with more than 1.5 million registered agents nationwide.
However, concerns over fraud, poor service quality, and inconsistent supervision have led to calls for stronger regulation.
Financial experts told DDM that these reforms could help restore public trust in the sector and prevent abuses by unscrupulous agents who exploit loopholes in monitoring systems.
The CBN maintained that it would continue to review and refine the guidelines as technology evolves, ensuring that the agent banking system remains secure, transparent, and inclusive for all Nigerians.
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