Nigeria’s Central Bank (CBN) has issued new rules that will bar point-of-sale (PoS) agents from operating under multiple service providers, in a move aimed at tightening regulation and reducing fraud in the country’s fast-growing agent banking sector.

According to CBN Circular Ref: FPR/DIR/PUB/CIR/002/025, published on October 3, each PoS agent will, from April 2026, be required to register and operate exclusively with a single super-agent, bank, or mobile money operator. The CBN said the directive is part of efforts to “sanitise the agent network and ensure full traceability of electronic payments.”

Nigeria’s PoS transaction value exceeded NGN88 trillion ($70bn) in the first eight months of 2025, according to the Nigeria Inter-Bank Settlement System (NIBSS). The directive will end the widespread practice of using multiple terminals from companies such as OPay, PalmPay, Moniepoint, and other licensed providers.

The new guidelines also introduce geo-tagging of all PoS machines—locking each terminal to a specific location to prevent relocation or duplication—and propose a daily withdrawal limit of NGN1.2mn ($816) per agent.

The CBN said the measure is intended to enhance accountability, improve data integrity, and strengthen consumer protection in a network which, according to NIBSS, now includes more than 2.1mn active PoS terminals nationwide.

Industry operators, including the Association of Mobile Money Agents of Nigeria (AMMAN), have asked the CBN to review the implementation timeline, citing concerns over network reliability and potential job losses. Thet argue that the rule could limit flexibility and revenue for smaller agents, who often rely on multiple devices to maintain service continuity during network outages.

Regulators counter that standardising platforms will help curb the rise in transaction reversals, fraud, and untraceable disputes linked to unregistered or duplicate terminals.

Under the revised Agent Banking Guidelines, operators must submit updated agent rosters and KYC documentation by March 31, 2026, ahead of enforcement. Non-compliance could attract suspension or licence withdrawal, the CBN warned.

Rise of the fintechs

Nigeria’s agent banking ecosystem—once dominated by banks—has been reshaped by fintechs such as Moniepoint, OPay, and PalmPay, which now process a large share of retail cash-in and cash-out transactions. The sector remains central to Nigeria’s financial inclusion strategy, extending digital financial services to rural and low-income communities nationwide.

Moniepoint currently processes about 42% of Nigeria’s total PoS transaction volumes, giving it the largest market share among licensed operators, according to recent NIBSS and company data published in Q3 2025. The company’s network spans all 36 states, supported by more than 400,000 active agents handling both merchant and consumer payments.

OPay ranks second at 25%, with strong penetration in major urban centres such as Lagos, Abuja, and Port Harcourt, while PalmPay, at 18%, holds a growing share driven by rapid expansion in retail and small-business segments.

Together, the three fintechs account for the vast majority of Nigeria’s electronic cash-in, cash-out, and bill-payment transactions, though bank-affiliated PoS networks, including FirstMonie and Access Closa, continue to maintain smaller but regionally significant footprints across parts of the country.