October 7, 2025
Individuals with unresolved debts, watch-listed Bank Verification Numbers, BVNs, or a history of financial misconduct have been bared from operating as Point of Sale, PoS, agents.
This is as the Central Bank of Nigeria, CBN, has issued new restrictions on who can participate in the fast-growing agent banking sector, under its revised Guidelines for the Operations of Agent Banking in Nigeria.
The guidelines, which was released on October 6, 2025, is geared towards tightening due diligence standards in an industry that has become critical to financial inclusion but is also plagued by fraud, risk, and weak oversight.
The new rules mark a significant tightening of Nigeria’s agent banking framework, moving beyond transaction monitoring to focus on the integrity of the individuals who operate at the last mile of financial inclusion.
Under the new guidelines, any person or entity with a non-performing loan with any financial institution in the last 12 months is ineligible to be appointed as an agent.
READ MORE; CBN Announces New ATM Transaction Charges
To close loopholes that would have allowed individuals with bad debts to resurface as PoS operators, CBN said credit information would be verified through licensed credit bureaus.
Individuals whose BVNs have been watch-listed, as well as anyone who has been blacklisted for financial misconduct. Agents convicted of felonies, fraud, dishonesty, or related offences will also not be permitted to operate are therefore disqualified.
Similarly, persons declared bankrupt or companies that have filed for insolvency are automatically barred from agent banking, reinforcing the regulator’s stance that only financially stable and trustworthy actors can hold such positions.
Henceforth, minimum standards for eligibility according to guidelines, stipulated that prospective agents must demonstrate the ability to carry out permissible activities such as deposits, withdrawals, and bill payments.
READ MORE; CBN Intervenes With Retail Dollar Auction To Save Naira.
In addition, they must also provide all mandatory information required under CBN regulations, secure authorisations from relevant authorities where necessary, and, in the case of individuals, be at least 18 years old.
CBN also mandated that principals banks, super agents, and licensed payment service providers conduct comprehensive due diligence before appointing agents. This includes verifying credit history, criminal records, sources of funds, business addresses, and pre-existing relationships that could pose risks.
Driven largely by PoS operators who bring financial services to rural and underserved communities, agent banking has expanded rapidly in Nigeria.
Currently there are over 8.3 million registered PoS terminals in the country and 5.9 million already deployed as of March 2025, with agents handling billions of naira in transactions monthly.
An complimentary and important as its, the sector has faced rising cases of fraud, theft, and unlicensed operators exploiting gaps in oversight. The CBN is signalling its intent to clean up the PoS industry and safeguard customer trust by cutting off access for individuals with poor credit records or compromised BVNs.
READ MORE; CBN New Directive For POS, Sets Daily Transactions At N100,000 Per Customer
Industry operators, however, face higher compliance costs, as principals must integrate credit checks, BVN verification, and legal clearances into their onboarding processes.
This new guideline and qualification criteria are part of broader reforms, which also include mandatory geo-tagging of PoS devices, transaction limits, real-time settlement requirements, and stiffer sanctions for default.
CBN directive in August 2025, which ordered operators to geo-tag all PoS devices within 60 days and align with the global ISO 20022 messaging standard, set the stage for tighter rules in October, that now embed sanctions and stricter onboarding checks.
However, the latest guidelines have extended the deadline to April 1, 2026. The extension to April 2026 gives breathing space but does not soften the sanctions for defaulters.
