The Central Financial institution of Nigeria (CBN) new coverage on agent banking might push at no fewer than 40 per cent Level-of-Sale (PoS) operators out of enterprise.
The Apex Financial institution launched new operational pointers for agent banking, capping the each day cumulative transactions per PoS agent at N1.2m.
Below the brand new framework, all agent banking transactions should be carried out by way of a devoted account or pockets maintained by the principal monetary establishment to make sure transparency and higher oversight.
The CBN warned that any agent discovered utilizing non-designated accounts for operations can be in violation of the regulation and would face sanctions.
Brokers concerned in misconduct or fraud might be blacklisted or have their agreements terminated.
The framework additional limits particular person buyer transactions to N100,000 each day, whereas agent gadgets should be geo-fenced to forestall unauthorised cellular use.
The CBN introduced that implementation of the brand new agent location and exclusivity guidelines would start on April 1, 2026.
Reacting to the brand new coverage, the Nationwide President of the Affiliation of Cell Cash and Financial institution Brokers of Nigeria, Fasasi Sharafadeen, mentioned the lately launched pointers by the apex financial institution might cripple small-scale companies and threaten the nation’s monetary inclusion efforts.
In line with Sharafadeen, one of the worrying points of the coverage is the introduction of exclusivity, which restricts brokers to function below just one principal or service supplier.
He defined that this transfer wouldn’t solely scale back the revenue of PoS brokers but additionally drive many out of enterprise as a result of lack of flexibility and buyer belief that presently defines company banking operations.
“About 40 per cent of PoS operators might be out of enterprise,” he mentioned. “At this time, there are over 3 million PoS terminals in circulation, and about two million energetic brokers.
“Many of those brokers function a number of terminals from totally different service suppliers to make sure effectivity and buyer satisfaction. The brand new exclusivity rule will destroy that steadiness.”
He added that PoS operators normally relied on a number of platforms to make sure regular transactions when one community fails.
“Some brokers select a selected supplier due to incentives like free financial institution transfers, whereas they use one other supplier that’s sooner in withdrawals,” he defined. “This combine ensures buyer expertise as a result of even when one service is down, they’ll nonetheless serve their clients by way of one other supplier.”
The affiliation president famous that the CBN’s argument for introducing exclusivity to allow simpler monitoring and sanctioning of suppliers in circumstances of fraud, overlooks the realities of casual sector operations.
“The central financial institution might have good intentions of making certain a secure and sound monetary atmosphere, however the implementation course of is defective,” he mentioned.
“They didn’t seek the advice of stakeholders within the casual sector. Company banking is just not owned by the massive service suppliers; it’s pushed by small enterprise house owners who finance their very own operations.”
He additional criticised the proposed 10-metre geofencing requirement for agent places, describing it as impractical and counterproductive.
He argued that the brand new rule might result in large shutdowns throughout agent places, particularly in rural areas the place banking providers are restricted.
The affiliation additionally expressed concern over different provisions within the CBN coverage, together with non-permissible providers that prohibit brokers from opening accounts or issuing playing cards, providers that presently kind a serious supply of revenue for operators.
“A variety of brokers make more cash from account opening and card issuance than from cash-in, cash-out providers. By eradicating these, the CBN is taking away various revenue sources and pushing operators into losses,” he mentioned.
The affiliation known as on the apex financial institution to revisit the rules, noting that its targets might nonetheless be achieved with out insurance policies that stifle operators.
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