The Central Bank of Nigeria (CBN) has issued new restrictions on who can qualify to operate as Point of Sale (PoS) agents under its revised Guidelines for the Operations of Agent Banking in Nigeria, effectively barring individuals with unresolved debts, watch-listed Bank Verification Numbers (BVNs), or a history of financial misconduct from participating in the fast-growing agent banking sector.
The guidelines, released on October 6, 2025, aim to tighten due diligence standards in an industry that has become critical to financial inclusion but is also plagued by fraud, over-concentration of 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 rules, 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. The CBN said credit information would be verified through licensed credit bureaus, closing loopholes that have allowed individuals with bad debts to resurface as PoS operators.
Also disqualified are 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.
In addition, 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.
For those seeking approval, the guidelines stipulate basic eligibility conditions. Prospective agents must demonstrate the ability to carry out permissible activities such as deposits, withdrawals, and bill payments. 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 and of sound mind.
The central bank 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.
Agent banking has expanded rapidly in Nigeria, driven largely by PoS operators who bring financial services to rural and underserved communities. 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.
However, the sector has faced rising cases of fraud, theft, and unlicensed operators exploiting gaps in oversight. By cutting off access for individuals with poor credit records or compromised BVNs, the CBN is signalling its intent to clean up the PoS industry and safeguard customer trust. Industry operators, however, face higher compliance costs, as principals must integrate credit checks, BVN verification, and legal clearances into their onboarding processes.
The new 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.
In August 2025, the CBN had already ordered operators to geo-tag all PoS devices within 60 days and align with the global ISO 20022 messaging standard. That directive set the stage for tighter rules in October, which 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 threat: come enforcement day, non-geo-locked terminals may be shut down, and agents or institutions may incur heavy fines.