The Central Bank of Nigeria (CBN) has
introduced stricter qualification criteria for individuals and entities
operating as Point of Sale (PoS) agents, effectively barring those with
unresolved debts, blacklisted Bank Verification Numbers (BVNs), or a history of
financial misconduct from participating in the agent banking sector.
The directive, contained in the revised Guidelines
for the Operations of Agent Banking in Nigeria released on October 6,
2025, seeks to strengthen integrity, oversight, and risk management in an
industry that has become critical to Nigeria’s financial inclusion efforts but
increasingly vulnerable to fraud and abuse.
Stricter Rules for Eligibility
According to the guidelines, anyone with a non-performing
loan within the last 12 months is ineligible to be appointed as an
agent. The apex bank said all credit records will be verified through licensed
credit bureaus to prevent individuals with bad debts from resurfacing as PoS
operators.
Also ineligible are persons whose BVNs are on the
watchlist, as well as those blacklisted for financial misconduct.
Individuals convicted of felonies, fraud, dishonesty, or related offences,
along with bankrupt persons or insolvent entities, will also be automatically
disqualified.
The CBN emphasized that only financially stable and
trustworthy individuals or institutions can participate in agent banking,
underscoring the need for improved accountability across the sector.
Minimum Standards and Due Diligence
Under the new rules, prospective agents must
demonstrate the capacity to perform permissible banking services such as
deposits, withdrawals, and bill payments. They must provide all regulatory
information, obtain necessary authorisations, and — in the case of individuals
— be at least 18 years old and of sound mind.
The guidelines also require banks, super agents,
and licensed payment service providers to conduct comprehensive due
diligence before appointing agents. This includes verifying criminal
records, credit history, source of funds, and any pre-existing relationships
that may pose a conflict of interest.
CBN Targets PoS Fraud and Oversight Gaps
Agent banking has grown rapidly in Nigeria, largely
driven by PoS operators expanding access to financial services in rural and
underserved areas. As of March 2025, there were over 8.3 million
registered PoS terminals, with 5.9 million deployed nationwide,
processing billions of naira monthly.
However, the sector has faced rising incidents of fraud,
theft, and unlicensed operations. By screening out high-risk individuals,
the CBN aims to clean up the PoS ecosystem and reinforce public trust in
digital financial services.
Implementation and Deadlines
The new qualification rules form part of broader
reforms that include mandatory geo-tagging of PoS devices, transaction
limits, real-time settlement, and stiffer sanctions for
defaulters.
In August 2025, the CBN had ordered all
operators to geo-tag their PoS terminals and comply with the global
ISO 20022 messaging standard within 60 days. The latest update, however, extends
the compliance deadline to April 1, 2026.
While the extension gives operators more time to align
with the new standards, the apex bank warned that from April 2026,
non-compliant PoS devices may be deactivated, and defaulting institutions could
face severe penalties.
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