CBN Issues Guidelines And Sets Daily Transaction Limit At N1.2m For Agent Banking

The Central Bank of Nigeria (CBN) has introduced a revised regulatory framework for agent banking nationwide, designed to enhance service quality, safeguard consumers, and advance financial inclusion.

In a circular issued by Musa Jimoh, Director of the CBN’s Payments System Policy Department, the apex bank announced that the updated regulations would be effective immediately, with provisions related to agent location and exclusivity starting on April 1, 2026. Jimoh stated that the objective of the new framework is to “set minimum standards for agent banking in Nigeria,” fostering responsible practices and ensuring transparency within the system.

The CBN mandated that all agent banking transactions must now be conducted through a dedicated account or wallet managed by the principal financial institution. The bank cautioned that using non-designated accounts for such activities would breach the new rules and result in penalties. Agents found engaging in misconduct or fraud could face personal accountability, risking contract termination or being barred from future participation.

To ensure transparency, financial institutions are required to publish and regularly update their agent lists on their official websites. Additionally, each branch of a principal institution must display the list of agents operating in its area. The guidelines also specify that super agents, who oversee networks of other agents, must maintain at least 50 agents across Nigeria’s six geopolitical zones to enhance access to financial services nationwide.

The new policy forbids agents from relocating, closing, or transferring their business premises without written consent from their principal or super agent. It also mandates that any relocation notice be publicly displayed at the agent’s current premises for at least 30 days prior to the move, ensuring customers are informed.

Under the revised framework, the CBN requires all transactions to be conducted in real time using secure and interoperable payment systems. Financial institutions must implement technology that ensures instant payment settlements and enables automatic reversals in case of system failures. The circular specifies that every transaction must produce a receipt or acknowledgement displaying the agent’s name and location coordinates. The CBN further directed that records and audit trails be maintained for at least five years for regulatory review and oversight.

To curb abuse, the bank set a daily cumulative cash-out limit of ₦1.2 million per agent, with the possibility of revising these limits as needed. Devices used for agent banking must be geo-fenced to operate only within the registered business premises, preventing unauthorized use in other locations.

The CBN also outlined reporting requirements for financial institutions, obligating them to submit monthly returns by the 10th day of each month. These reports must detail transaction volumes and values, fraud incidents, the number of active agents, customer complaints, and agent training activities.

For non-compliance, the CBN stated it would enforce administrative or regulatory sanctions, such as suspending the onboarding of new agents, blacklisting, removing management personnel, or revoking operating licenses. “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 noted.

According to the apex bank, these measures are part of its continuous efforts to strengthen oversight of agent banking operations, improve consumer protection, and maintain trust and stability in Nigeria’s financial services sector.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli