The Central Bank of Nigeria (CBN) has issued a new set of guidelines for the operations of agent banking in Nigeria.
Agent banking is the provision of financial services to customers by a third party (agent) on behalf of a licensed deposit taking financial institution or mobile money operator.
In a circular signed by Musa Jimoh, director of the CBN’s payments system policy department, on Monday, the apex bank said the new rules were designed to enhance service quality, protect consumers, promote financial inclusion, and ensure the stability of the financial system.
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The circular, addressed to all deposit money banks, other financial institutions (OFIs), and payment service providers, takes immediate effect, while the provisions on agent location and agent exclusivity will come into force on April 1, 2026.
“The Guidelines aim to establish minimum standards for operating agent banking in Nigeria, enhancing agent banking to provide financial services and promoting financial inclusion, encouraging responsible market conduct and improving service quality,” the CBN said.
The bank directed all stakeholders to ensure strict compliance, warning that it would “continue to monitor developments and issue further guidance as may be appropriate.”
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CBN PROHIBITS USE OF NON-DESIGNATED ACCOUNTS FOR AGENT BANKING OPERATIONS
Under the new framework, all agent banking transactions must be conducted through a dedicated account or wallet maintained by the principal financial institution for better oversight and transparency.
The guidelines prohibit the use of non-designated accounts for agent operations, warning that such practices would constitute a violation and attract sanctions.
CBN said agents found in breach would be personally liable for misconduct, fraud, or related offences, and could face termination of their agreements or be placed on industry watchlists.
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In addition, financial institutions — referred to as “principals” — must publish and regularly update the list of all their agents on their official websites.
Each branch of a principal is also required to display the list of its agents within its locality.
“Principals shall publish an updated list of all their Agents on their websites. ii. Each branch of the Principal shall display the list of its Agents in that branch’s locality,” CBN said.
“Super agents must have at least 50 or more agents spread across Nigeria’s six geopolitical zones, ensuring broader coverage and access to financial services in underserved areas.”
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A super-agent is an agent that has been contracted by a financial institution and may thereafter subcontract other agents in a network while retaining overall responsibility for the agency relationship.
The guidelines also stipulate that no agent can relocate, transfer, or close its banking premises without prior written approval from its principal or super agent.
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According to the circular, any relocation notice must be visibly “posted at the business premises for at least 30 days to notify customers”.
CBN SETS TRANSACTION LIMIT, DIRECTS REAL-TIME TRANSACTIONS
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The CBN now requires all agent transactions to be carried out on a real-time basis using secure and interoperable payment infrastructure.
The financial regulator said financial institutions must deploy technologies that ensure instant payment settlements and immediate transaction reversals in cases of system failure.
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“Generate receipts or acknowledgements for successful transactions. Automatically prevent an Agent from exceeding the daily limit allowed or performing unauthorised transactions,” the apex bank said.
“Automatic rejections of suspicious transactions; Transaction receipts must include the agent’s name and geographic coordinates, while audit trails and settlement records must be preserved for a minimum of five years to support control and regulatory oversight.”
The guidelines also set daily and weekly transaction limits for cash-in and cash-out operations, with a daily cumulative cash-out limit of N1.2 million per agent.
“The CBN may vary or amend the transaction limits specified from time to time for each service in line with the extant CBN Guide to Charges for Banks and Other Financial Institutions in Nigeria,” the regulator said.
“Any device deployed to an Agent or utilised by an Agent in carrying on Agent banking services shall be geo-fenced or tagged to operate within the agreed registered Agent premises or location.”
CBN also said devices used by agents must be geo-fenced to operate strictly within registered locations, preventing mobile or unauthorised use elsewhere.
REPORTING, SANCTIONS AND PENALTIES
According to the guidelines, financial institutions are required to submit monthly returns to the CBN, not later than the 10th of every month, detailing transaction volumes and values, incidents of fraud, number of active agents, customer complaints, and details of agent training, among others.
CBN said it also reserves the right to request additional information, conduct inspections, or exercise direct supervisory powers over agents at any time.
The apex bank said institutions that breach the guidelines face administrative and regulatory sanctions, including suspension from onboarding new agents, blacklisting, removal of management officials, or revocation of licences.
The regulator said it may also blacklist any principal or super agent whose agents persistently violate regulations.
“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.
The apex bank also said the new framework is part of ongoing efforts to strengthen agent banking oversight, safeguard customers, and build trust in Nigeria’s rapidly expanding financial services ecosystem.
