A new policy from the Central Bank of Nigeria on agent banking is projected to push about 40 per cent of Point-of-Sale operators out of business, according to the national body representing them.

The National President of the Association of Mobile Money and Bank Agents of Nigeria, Fasasi Sharafadeen, told Sunday PUNCH that the recently released guidelines by the apex bank could cripple small-scale businesses and threaten the country’s financial inclusion efforts.

The CBN’s new operational guidelines for agent banking cap the daily cumulative transactions per PoS agent at N1.2 million and mandate that all transactions be conducted through a dedicated account or wallet to ensure transparency and better oversight, with the implementation of new location and exclusivity rules set to begin on April 1, 2026.

The CBN warned that any agent found using non-designated accounts for operations would face sanctions, while those involved in misconduct or fraud will be blacklisted or have their agreements terminated.

The framework further limits individual customer transactions to N100,000 daily and requires agent devices to be geo-fenced to prevent unauthorized mobile use.

According to Sharafadeen, one of the most worrying aspects of the policy is the introduction of exclusivity, which restricts agents to operating under only one principal or service provider. He explained that this would not only reduce agents’ income but also destroy the flexibility and customer trust that currently define the sector.

“About 40 per cent of PoS operators will be out of business,” he said. “Today, there are over 3 million PoS terminals in circulation, and about two million active agents. Many of these agents operate multiple terminals from different service providers to ensure efficiency and customer satisfaction. The new exclusivity rule will destroy that balance.” He added that operators rely on multiple platforms to ensure service continuity when one network fails.

“Some agents choose a particular provider because of incentives like free bank transfers, while they use another provider that is faster in withdrawals,” he explained. “This mix guarantees customer experience because even when one service is down, they can still serve their customers through another provider.”

Sharafadeen noted that while the CBN’s intention of ensuring a safe financial environment is understandable, the implementation process is flawed due to a lack of consultation with key stakeholders.

“The central bank may have good intentions of ensuring a safe and sound financial environment, but the implementation process is faulty,” he said. “They did not consult stakeholders in the informal sector. Agency banking is not owned by the big service providers; it is driven by small business owners who finance their own operations.”

He also criticized the proposed 10-metre geofencing requirement as impractical, arguing it could lead to massive shutdowns, especially in rural areas. The association also raised concerns over the restriction on services like account opening and card issuance, which are a major source of income for many.

“A lot of agents make more money from account opening and card issuance than from cash-in, cash-out services. By removing these, the CBN is taking away alternative income sources and pushing operators into losses,” he said.

The association president further argued that the exclusivity policy would hand an undue advantage to a few dominant players. “As of today, there are over 200 service providers offering agent banking services in Nigeria. But only about five of them control over 70 per cent of all registered agents.” He noted that with the biggest provider having around 500,000 agents, the new rule will likely lead to further market consolidation, squeezing out smaller fintech companies.

These concerns were echoed by PoS operators who spoke to The PUNCH, stating that the N1.2 million daily transaction limit could force them out of business and worsen cash access for millions.

A Lagos-based operator named Oluwatobi said the limit would hurt his operations. “I make about N15,000 daily from PoS transactions because I combine it with my provisions business. Sometimes, I give out cash of over N1.2m in a day, depending on demand…this policy will definitely affect my savings because we also buy cash to stay in business. The CBN is not considering that part,” he said.

Another operator, Akiyemi Olabode, lamented the impact on those relying on it for steady income. “I have up to three PoS machines. With this restriction, it’s going to be bad. Many of us will struggle to meet customers’ demands or even survive,” he lamented.

Similarly, an agent named Grace described the policy as “unfair” and “anti-business,” especially for women supporting their families. “Most of us started this business to make ends meet. I attend to market women and traders who withdraw in bulk to buy goods. If CBN limits what I can give out daily, I’ll lose customers, and my income will drop. It’s not easy,” she said.

Commenting on the matter, Akpan Ekpo, a former Director of the CBN, said the apex bank should first focus on improving the functionality of Automated Teller Machines nationwide.

“The CBN is the ones regulating money, and I will not fault them for anything they are doing. However, before PoS, businesses were using banks, and I don’t see this discouraging them. What they should do is make sure the ATMs at the banks are functional,” he stated.

He conceded that while the objective may be to reduce cash in circulation, its success depends on effective monitoring.

Conversely, Olawale Ajayi, Head of Strategy at Lagos Business School, noted that the policy could strengthen security and accountability by linking agents’ Bank Verification Number and Tax Identification Number to their operations, which would help trace fraudulent activities.

“It will go a long way in addressing impersonation and tracing financial misconduct…If there is some level of consolidation and proper regulation of agents, it will strengthen the system,” Ajayi said.

However, Boniface Okezie, National Chairman of the Progressive Shareholders Association of Nigeria, criticized the CBN for regulatory overreach. “Why should the CBN get itself involved in mundane things? They should give guidelines, not over-regulate…They should focus on fixing the quality of currency in circulation and ensuring banks dispense clean notes,” he said, adding that commercial banks already bear the cost of sorting bad currency, a task that should be the CBN’s.