New CBN Rules May Push 40% Of PoS Agents Out Of Work

A new policy released by the Central Bank of Nigeria is stirring tension among Point-of-Sale operators, as industry leaders warn that about 40 percent of agents may be forced out of business.

The policy, which sets stricter rules for agent banking operations, is raising fears that small-scale operators could lose their livelihoods.

The apex bank’s new guideline caps the daily cumulative transactions of each PoS agent at N1.2 million and limits individual customer transactions to N100,000 per day. It also directs that all agent banking activities must be carried out through accounts or wallets designated by licensed financial institutions. Any agent who operates outside these approved channels faces sanctions, blacklisting, or contract termination.

The policy introduces an exclusivity clause that allows agents to work with only one service provider. Many operators say this rule will cripple their income and reduce their ability to meet customer demand. For years, most PoS agents have depended on multiple platforms to stay functional when one network fails. By restricting them to a single provider, they fear longer downtimes and lower earnings.

The Central Bank has also introduced a new rule that requires PoS devices to be geo-fenced, preventing agents from moving their machines beyond a 10-metre radius. Operators describe this as unrealistic, especially for those working in open markets and rural areas where flexibility is key. They warn that the restriction could disrupt service delivery and push more people away from formal financial systems.

Beyond limiting transactions and movement, the new framework bans agents from offering certain services such as account opening and card issuance. These activities have long been a major source of income for PoS operators, and many say the removal will worsen their financial situation. With fewer earning options, small operators fear being edged out by larger fintech firms that have stronger financial backing.

Leaders of the Association of Mobile Money and Bank Agents of Nigeria argue that the policy will destroy years of progress in financial inclusion. They maintain that the guidelines were introduced without proper consultation with stakeholders, especially those running small and informal operations. They insist that agency banking was built by everyday Nigerians who used personal funds to bring financial services closer to communities.

Experts in the financial sector are split over the development. Some believe the policy could improve transparency and reduce fraud by ensuring every transaction is traceable to the operator’s verified account. The Central Bank’s inclusion of Bank Verification Numbers and Tax Identification Numbers in the framework is seen by analysts as a step toward tightening oversight and curbing criminal activity.

Others, however, fault the Central Bank’s approach. They argue that while regulation is necessary, the new rules are too restrictive and may suffocate small players. Critics say the apex bank should instead focus on fixing broader challenges in the financial system, such as the shortage of clean currency notes and the poor performance of Automated Teller Machines across the country.

Economists also warn that the timing of the policy could worsen unemployment. With millions of Nigerians depending on PoS transactions for daily access to cash, the policy may deepen the struggle for small business owners and create wider gaps in financial access, especially in rural areas.

The new rules are expected to take full effect from April 1, 2026. Between now and then, agents, fintech companies, and regulators are expected to engage in discussions that could determine the future of Nigeria’s fast-growing PoS industry. Whether the guidelines will strengthen the system or push thousands out of work remains uncertain, but many operators are already bracing for tough times ahead.