The Central Bank of Nigeria has announced that any agent found engaging in non-permissible activities under its newly revised Agent Banking Guidelines will face a minimum penalty of N5 million for the offense and N100,000 for each day the default continues, in addition to forfeiting any profit made from such activities.

According to the revised guidelines, operating without a valid Super Agent license attracts a significant fine: “Operating without a valid Super Agent licence attracts a fine of not less than N10 million and N200,000 for each day the default persists. Engaging in non-permissible agent banking activities attracts a fine of not less than N5 million and N100,000 for each day of the default. In addition, the entity shall forfeit the estimated profit.”

The CBN further stipulated penalties for financial institutions. Failure to obtain its approval or a ‘No Objection’ as stipulated in the guidelines attracts a fine of N2 million for the financial institution and for each director or senior management staff responsible for the infraction.

Similarly, failure to maintain proper accounting records attracts a fine of not less than N5 million for the FI, while any officer who wilfully caused the default will pay a minimum of N2 million.

The list of non-permissible activities under the guidelines includes: Super Agents undertaking agent banking activities; Agents offering banking services such as customer account opening, loan underwriting, investment, or forex services; Delegating permissible agent activities to another entity or individual; Using non-human or automated machines as agents; and Any other activity deemed non-permissible by the CBN.

The apex bank also ruled that individuals or entities with non-performing loans within 12 months preceding their appointment or renewal as agent bankers are unfit for such roles.

Other disqualified persons or entities include individuals declared bankrupt, companies under insolvency, and individuals whose Bank Verification Numbers are watch-listed.

The CBN explained that the review of the Agent Banking Guidelines became necessary due to the rapid expansion and increasing sophistication of the sector driven by technological advancement.

It noted that the new guidelines consolidate all existing policies into a single document to comprehensively address emerging issues within the agent banking ecosystem.