The Central Bank of Nigeria (CBN) has announced a new regulatory framework for agent banking across the country, aimed at improving service quality, protecting consumers, and promoting financial inclusion.

 

 

 

In a circular signed by Musa Jimoh, Director of the CBN’s Payments System Policy Department, the apex bank said the updated rules would take immediate effect, though provisions concerning agent location and exclusivity will begin on April 1, 2026. Jimoh explained that the goal of the new framework is to “set minimum standards for agent banking in Nigeria,” encouraging responsible practices and ensuring transparency within the system.

 

 

 

The CBN stated that all agent banking transactions must now be carried out through a dedicated account or wallet managed by the principal financial institution. Using non-designated accounts for such operations, the bank warned, would violate the new rules and attract sanctions. Agents who engage in misconduct or fraud could be held personally accountable and risk losing their contracts or being blacklisted from future participation.

 

 

 

 

In line with the transparency requirement, financial institutions must publish and regularly update the list of all their agents on their official websites. Each branch of a principal institution is also expected to display the list of agents operating within its locality. The guidelines further stipulate that super agents, those responsible for managing networks of other agents, must have at least 50 agents distributed across Nigeria’s six geopolitical zones to improve access to financial services nationwide.

 

 

 

 

 

The new policy prohibits agents from relocating, closing, or transferring their business premises without written approval from their principal or super agent. It also requires that any relocation notice be publicly displayed at the agent’s current premises for at least 30 days before the move, to keep customers informed.

 

 

 

Under the updated framework, the CBN requires that all transactions be conducted in real time using secure and interoperable payment systems. Financial institutions must deploy technology that ensures instant payment settlements and allows automatic reversals in the event of a system failure. According to the circular, every transaction must generate a receipt or acknowledgement showing the agent’s name and location coordinates. The CBN also directed that records and audit trails be retained for a minimum of five years for regulatory review and oversight.

 

 

 

 

To prevent abuse, the bank imposed a daily cumulative cash-out limit of ₦1.2 million per agent, noting that it may revise these limits when necessary. Devices used for agent banking are to be geo-fenced so that they only function within the registered business premises, thereby preventing unauthorised use elsewhere.

 

 

 

The CBN also set out reporting obligations for financial institutions, mandating them to submit monthly returns by the 10th day of each month. These reports must include transaction volumes and values, instances of fraud, the number of active agents, customer complaints, and details of agent training activities.

 

 

 

In cases of non-compliance, the CBN said it would impose administrative or regulatory sanctions such as suspension from onboarding new agents, blacklisting, removal of management personnel, or even 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.

 

 

 

According to the apex bank, the new measures form part of its ongoing efforts to strengthen oversight of agent banking operations, enhance consumer protection, and maintain trust and stability in Nigeria’s financial services sector.