The Central Bank of Nigeria (CBN) has introduced a new regulatory framework for agent banking operations across the country, which it says is is designed to strengthen transparency, improve service delivery, and expand access to financial services, especially in rural communities.
In a circular signed by Musa Jimoh, Director of the CBN’s Payments System Policy Department, the apex bank said the new guidelines take immediate effect, though certain provisions — particularly those on agent location and exclusivity — will kick in on April 1, 2026.
Jimoh said the move was aimed at “setting minimum standards for agent banking in Nigeria” while promoting responsible practices and ensuring accountability among operators.
Agent banking has been one of the cornerstones of Nigeria’s financial inclusion drive, helping millions of citizens access deposits, withdrawals, and transfers without visiting a traditional bank branch.
But the rapid growth of the sector has also come with challenges — including fraud, poor service, and weak regulation — issues the CBN now seeks to correct.
Stricter Controls on Operations
The new rules make it mandatory for all agent banking transactions to be carried out through a dedicated account or wallet managed by the principal financial institution.
Any use of non-designated accounts, the CBN warned, would attract sanctions.
Agents who engage in misconduct or fraudulent activities will be held personally responsible and may be blacklisted or stripped of their licences.
In a bid to ensure transparency, banks and other financial institutions are required to publish and regularly update their lists of registered agents on their official websites. Each branch of a principal institution must also display the list of agents operating within its local area.
Super agents — who oversee networks of smaller agents — must maintain at least 50 agents spread across Nigeria’s six geopolitical zones, to guarantee fair representation and wider reach.
Real-Time Transactions and Customer Visibility
The CBN’s updated framework insists that all transactions must now be real-time, conducted through secure and interoperable payment systems.
Financial institutions must deploy technology that guarantees instant settlements and automatic reversals in case of failed transactions.
Each transaction must also produce a receipt or acknowledgment containing the agent’s name and location coordinates, ensuring traceability.
The circular adds that all transaction records and audit trails must be stored for at least five years for review and regulatory inspection.
Cash-Out Limits and Device Restrictions
To control risk and prevent abuse, the CBN set a ₦1.2 million daily cash-out limit per agent, warning that the threshold could be reviewed as necessary.
Devices used for agent banking must be geo-fenced — meaning they will only work within the registered business premises to prevent unauthorized use in other locations.
Agents are also barred from relocating, closing, or transferring their business premises without prior written approval from their principal or super agent.
Any planned relocation must be publicly displayed for at least 30 days at the current premises before moving.
Tightened Reporting and Sanctions
Financial institutions must now submit monthly reports to the CBN by the 10th of every month.
These reports must include transaction volumes and values, customer complaints, incidents of fraud, the number of active agents, and records of training programs.
In cases of non-compliance, the apex bank said it may impose administrative or regulatory sanctions, including:
- Suspension from onboarding new agents
- Blacklisting of defaulting institutions or agents
- Removal of management personnel
- Revocation of operating licences
“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 stated.
Towards a Safer and More Inclusive Financial System
The central bank said the updated framework is part of ongoing efforts to strengthen oversight, enhance consumer protection, and deepen public trust in Nigeria’s fast-growing digital and agent banking space.
Analysts say the move signals a maturing financial ecosystem — one where access and accountability must go hand in hand.
As Nigeria pushes toward full financial inclusion by 2030, the CBN’s new rules could reshape the agent banking, ensuring that the benefits of digital finance reach every community — safely, transparently, and sustainably.
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