The Central Bank of Nigeria (CBN) has introduced new guidelines governing the operations of agent banking across the country, placing limits on daily and weekly cash transactions.

The directive, aimed at deepening financial inclusion and reducing risks associated with cash handling, sets a daily transaction limit of N100,000 per customer for both deposits (cash-in) and withdrawals (cash-out). The weekly cap is fixed at N500,000 per customer.

Agent banking, which allows third-party individuals or entities to provide basic financial services on behalf of licensed deposit-taking institutions, has become a vital channel for extending financial access to underserved communities. However, the CBN says its growing adoption necessitates tighter regulation to ensure transparency, customer protection, and proper monitoring of transactions.

According to a circular issued on October 6, 2025, with reference number PSP/DIR/CON/CWO/001/049, the new framework titled Guidelines for the Operations of Agent Banking in Nigeria establishes comprehensive standards for agent banking activities. The document was signed by Musa I. Jimoh, director of the Payments System Policy Department. While the guidelines take effect immediately, provisions relating to agent location and agent exclusivity will come into force from April 1, 2026.

In the new framework, daily and weekly limits also apply to bill payments conducted through agent banking channels. Customers are restricted to N100,000 per day and per week when using agents to settle bills. The CBN explained that the introduction of these thresholds is designed to curb abuse, prevent money laundering, and enhance regulatory oversight.

Under the rules, financial institutions appointing agents, referred to as Principals, are required to ensure that each agent’s cumulative daily cash-out limit does not exceed N1.2 million. The CBN also reserves the right to revise transaction limits periodically in line with its Guide to Charges for Banks and Other Financial Institutions in Nigeria.

To further strengthen monitoring, all devices used by agents, such as point-of-sale (PoS) terminals, must be geo-fenced. This means they can only operate within the registered and approved locations of the agent. These devices must also be linked to a dedicated account or wallet provided by the Principal. Transactions conducted outside this dedicated account are considered violations of the guidelines, and the agent may be held personally liable for any resulting misconduct or fraud. Such breaches may lead to termination of the agent agreement and blacklisting or watch-listing of the agent involved.

Financial institutions must maintain transparency in agent deployment. Principals are required to publish updated lists of all their agents on their official websites. Each branch of a Principal institution must display the list of agents operating within its locality. Furthermore, any institution operating as a Super Agent must have at least 50 active agents spread across Nigeria’s six geopolitical zones.

The CBN also emphasized that all agent banking transactions must be conducted through a dedicated account or wallet with the Principal. Payment terminals such as PoS devices must be linked exclusively to these accounts. Agents operating outside of this arrangement will violate the guidelines. The agent, in such cases, shall be held personally responsible for any misconduct, and such actions may serve as grounds for contract termination and regulatory sanctions.

On the issue of enforcement, the CBN stated that it may take corrective action against any Principal or Super Agent whose agents repeatedly breach regulations. These actions may include blacklisting from participating in agent banking services. In situations deemed appropriate by the regulator, the CBN may also issue direct instructions for remedial measures to be taken by the Principal or the agents concerned.

The guidelines also include provisions for technology standards. The CBN mandates that all technological systems used in agent banking must ensure secure transmission of transaction data and seamless interoperability with the national payments infrastructure. Customers must receive immediate value for transactions, and in the event of a failed transaction, reversals must be processed without delay. All successful transactions should generate receipts or acknowledgements for customer records.

Agent banking platforms must automatically enforce daily transaction limits and reject unauthorized or suspicious transactions. There must be real-time monitoring of transactions, electronic audit trails to support dispute resolution and oversight, and all settlement records must be stored for a minimum of five years or longer, as required by law. The systems must also be equipped with features that prevent agents from exceeding their permitted transaction limits.

The CBN reiterated its commitment to fostering an inclusive, secure, and efficient financial system. It urged all deposit money banks, other financial institutions, and payment service providers to comply strictly with the new guidelines. The apex bank added that it will continue to monitor the agent banking sector and issue further guidance as necessary to ensure alignment with its regulatory objectives. (BusinessDay)

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