Point of Sale (PoS) operators have raised an alarm that the Central Bank of Nigeria’s (CBN) new policy on agent banking could force many small fintech companies out of business and create monopolies.
The operators, under the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), said the rule, which mandates PoS agents to work exclusively with one financial institution or super-agent, will distort competition and expose thousands of small operators to losses.
They argued that by restricting agents from offering multiple services across platforms such as PalmPay, OPay, and Moniepoint, among others, the CBN risks weakening one of Nigeria’s most vibrant informal business sectors that employs millions and drives cashless transactions across the country.
Speaking with Naijaonpoint, the National President of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), Mr. Fasasi Sharafadeen, said the new rules, which require agents to operate exclusively under a single financial institution or super-agent, will have far-reaching consequences on the over 1.9 million PoS agents across the country.
He warned that the policy could create monopolies in the market, giving larger fintechs an unfair advantage over smaller players.
“Out of about 200 service providers in Nigeria today, only five control nearly 70% of the agent market. Making operations exclusive will further concentrate power in their hands,” he said.
He added that the shared agent model had allowed smaller fintechs to grow and compete, as agents could serve customers using multiple platforms.
“That is the uniqueness of the PoS business and why over 80% of Nigerians are no longer going to the banks. They are visiting agent locations because they are sure that if Opay service is down, PalmPay will not, if PalmPay is down, Moniepoint will not,” he said.
Another top player in the PoS ecosystem, Mr. Chigozie Anayo, echoed similar concerns, saying the new rules could lead to massive divestment and job losses.
“If agents are forced to pick one principal, most fintechs will struggle to retain their current agent base. Some may even exit the market,” he said.
Beyond exclusivity, the policy also introduces stricter branding and operational requirements. Agents must now operate from clearly branded kiosks tied to their chosen financial institution, and are discouraged from running multiple businesses at the same location
“Many agents combine PoS services with petty trading to survive. Telling them to only do PoS transactions is like asking them to abandon their source of livelihood,” he argued.
He further questioned the CBN’s approach to policymaking, suggesting that it was based on theoretical assumptions rather than practical realities.
“Many of those making these policies have never operated in the field. You can’t regulate an informal sector effectively from an office desk,” he said.
The latest policy shift follows an earlier directive by the CBN mandating geo-tagging of all PoS terminals in the country, a move many see as a limitation to the operations of PoS businesses.
In the directive released earlier in September, the CBN mandated the use of ISO 20022 messaging for payments and required devices to support geolocation and geofencing, limiting operational radius to ~10 metres from registered addresses. Terminals that failed the compliance checks scheduled from October 20, 2025, would be deactivated.
In the directive released earlier in September, the CBN mandated the use of ISO 20022 messaging for payments and required devices to support geolocation and geofencing, limiting operational radius to ~10 metres from registered addresses. Terminals that failed the compliance checks scheduled from October 20, 2025, would be deactivated.
In a circular (PSP/DIR/CON/CWO/001/049) released October 6, 2025, and signed by Musa I. Jimoh, Director of Payments System Policy, the CBN introduced fresh compliance measures to reflect the growing sophistication of the PoS ecosystem and Nigeria’s push for deeper financial inclusion.
Under the new framework, all agent banking transactions must be conducted through a dedicated account or wallet maintained by the principal financial institution to ensure transparency and better oversight.