The Central Bank of Nigeria (CBN) has introduced a new regulatory framework for agent banking nationwide to enhance service quality, protect consumers, and promote financial inclusion.
In a circular signed by Musa Jimoh, Director of the CBN’s Payments System Policy Department, the bank announced that the updated rules would take immediate effect, with certain provisions on agent location and exclusivity set to begin on April 1, 2026. Jimoh explained that the framework aims to “set minimum standards for agent banking in Nigeria,” encouraging responsible practices and ensuring transparency throughout the system.
The CBN mandates that all agent banking transactions be conducted through a dedicated account or wallet managed by the principal financial institution. Use of non-designated accounts for such transactions is prohibited and may result in sanctions. Agents involved in fraud or misconduct could face personal liability, contract termination, or blacklisting.
To uphold transparency, financial institutions must publish and regularly update the list of their agents on official websites. Each branch is also required to display agents operating within its area. Super agents—those managing networks of other agents—must maintain a minimum of 50 agents spread across Nigeria’s six geopolitical zones to expand nationwide financial access.
The policy restricts agents from relocating, closing, or transferring their business without written approval from their principal or super agent. Additionally, agents must publicly display relocation notices at their current premises for at least 30 days prior to moving, keeping customers informed.
All transactions under the new framework must be processed in real time via secure, interoperable payment systems. Financial institutions are required to implement technology that enables instant payment settlements and automatic reversals in case of failures. Each transaction must generate a receipt or acknowledgment containing the agent’s name and geographic coordinates. Records and audit trails must be retained for a minimum of five years for regulatory oversight.
To curb misuse, the CBN has set a daily cumulative cash-out limit of ₦1.2 million per agent, with the possibility of future revisions. Agent banking devices are to be geo-fenced, functioning only within registered business locations to prevent unauthorized use elsewhere.
Financial institutions are also obligated to submit monthly reports by the 10th of each month, detailing transaction volumes and values, fraud incidents, active agent numbers, customer complaints, and agent training activities.
Non-compliance may result in administrative or regulatory sanctions including suspension from onboarding new agents, blacklisting, removal of management personnel, or even revocation of operating licenses. The circular stated, “The CBN may, in the event of a breach, invoke any or all sanctions against any defaulting participant in the agent banking system.”
These measures form part of the CBN’s ongoing efforts to strengthen oversight of agent banking, enhance consumer protection, and maintain trust and stability within Nigeria’s financial services sector.
