CBN Sets New PoS Policy With N1.2m Daily Limit

The Central Bank of Nigeria has introduced fresh regulations for Point of Sale and agent banking operations nationwide, setting a new daily cash-out ceiling of N1.2 million per agent and outlining stricter measures to monitor compliance and protect customers.

The policy, released through a circular signed by Musa Jimoh, Director of the Payments System Policy Department, applies to all banks, financial institutions, and payment service providers.

The new framework takes effect immediately, but certain clauses on agent location and exclusivity will become active from April 1, 2026. The bank said the policy aims to improve service delivery, ensure responsible conduct among agents, and expand access to financial services, especially in underserved areas.

Under the new rules, all transactions must pass through dedicated accounts or wallets created by financial institutions to promote transparency. Agents are prohibited from using personal or non-designated accounts, and anyone found guilty of violations, fraud, or misconduct will face sanctions, including contract termination or blacklisting.

Financial institutions, referred to as “principals,” must now publish and regularly update the list of their agents on their official websites. Each bank branch is also required to display the names of its approved agents operating within its area for easy public verification.

The CBN directed that every super agent must have at least 50 sub-agents spread across the country’s six geopolitical zones. These super agents will manage smaller operators on behalf of banks while remaining fully accountable for their activities. Agents are now forbidden from relocating or closing their shops without written permission from their principal, and any relocation notice must be publicly displayed for 30 days before the move.

All agent transactions are to be conducted in real time through secure and interoperable systems. The CBN instructed that each transaction must generate a receipt containing the agent’s name and location coordinates. Institutions must also store all transaction data, audit trails, and settlement records for at least five years.

The new daily cumulative cash-out limit is capped at N1.2 million, though the CBN reserves the right to adjust the figure as needed. Devices used by agents must be geo-fenced to operate strictly within registered business locations, a step designed to curb unauthorised movement of PoS machines.

Banks and payment providers are now required to submit monthly reports to the CBN by the 10th of every month. These reports must include transaction statistics, fraud incidents, customer complaints, agent activity levels, and details of training and supervision carried out.

The regulator warned that any institution or agent found breaching the guidelines risks penalties ranging from suspension of operations to revocation of licences. Super agents whose sub-agents repeatedly violate the rules may also be banned from the network.

According to the CBN, the reforms are part of efforts to strengthen oversight, protect customers, and sustain the gains made in financial inclusion. With more than 1.4 million registered agents across Nigeria, agent banking has become a key driver of access to financial services in both urban and rural areas.

Industry experts believe the new rules will help improve transparency, reduce fraud, and ensure a safer environment for digital transactions. While some operators may face short-term challenges in adapting, the long-term effect is expected to boost confidence and stability in Nigeria’s growing payment ecosystem.