In a significant move to bolster Nigeria’s financial services sector, the Central Bank of Nigeria (CBN) has unveiled a robust and updated regulatory framework for agent banking operations across the country. This new set of guidelines, designed to improve service quality, safeguard consumer interests, and advance financial inclusion, reflects the CBN’s commitment to fostering a transparent, efficient, and inclusive financial ecosystem. The announcement, detailed in a circular signed by Musa Jimoh, Director of the CBN’s Payments System Policy Department, underscores the apex bank’s determination to set minimum operational standards and promote responsible practices within the agent banking system. The new rules, which take effect immediately, include specific provisions concerning agent location and exclusivity that will commence on April 1, 2026.
The updated framework introduces several critical measures aimed at enhancing the operational integrity and accessibility of agent banking services. One of the cornerstone requirements is that all agent banking transactions must now be conducted through dedicated accounts or wallets managed exclusively by the principal financial institution. The CBN has explicitly prohibited the use of non-designated accounts for these transactions, warning that violations will attract stringent sanctions. This measure is intended to ensure traceability and accountability in all financial transactions conducted through agent banking channels. Agents found engaging in misconduct or fraudulent activities face severe consequences, including personal accountability, potential termination of their contracts, and the risk of being blacklisted from participating in future agent banking activities.
Transparency is a key pillar of the new framework. To this end, the CBN mandates that financial institutions publish and regularly update comprehensive lists of their agents on their official websites. Additionally, each branch of a principal institution is required to display a list of agents operating within its locality, ensuring that customers have easy access to this information. This requirement is particularly significant for rural and underserved areas, where agent banking plays a critical role in bridging the gap in financial service delivery. The guidelines also address the operational structure of super agents—entities responsible for managing networks of other agents. The CBN stipulates that super agents must maintain a minimum of 50 agents spread across Nigeria’s six geopolitical zones. This distribution requirement is designed to ensure that financial services are accessible nationwide, particularly in regions that have historically been underserved by traditional banking infrastructure.
To maintain operational stability and customer trust, the new policy imposes strict rules on the relocation, closure, or transfer of agent business premises. Agents are prohibited from making such changes without obtaining written approval from their principal or super agent. Furthermore, any planned relocation must be communicated to customers through a public notice displayed at the agent’s current premises for at least 30 days prior to the move. This provision ensures that customers are not left uninformed or inconvenienced by sudden changes in agent operations.
The CBN has also prioritized the adoption of secure and efficient technology in agent banking operations. The new framework mandates that all transactions be conducted in real time using interoperable payment systems that guarantee instant payment settlements. In cases of system failures, financial institutions are required to deploy technology that facilitates automatic reversals, thereby minimizing disruptions for customers. To further enhance transparency and accountability, every transaction must generate a receipt or acknowledgment that includes the agent’s name and location coordinates. The CBN has also set a minimum retention period of five years for transaction records and audit trails, enabling regulatory oversight and ensuring compliance with the new guidelines.
To curb potential abuse within the system, the CBN has introduced a daily cumulative cash-out limit of ₦1.2 million per agent. This cap is subject to periodic review by the apex bank to ensure it aligns with economic realities and operational needs. Additionally, devices used for agent banking must be geo-fenced, meaning they can only function within the registered business premises. This measure prevents unauthorized use of devices outside designated locations, further strengthening the security of agent banking operations.
Financial institutions are also subject to rigorous reporting requirements under the new framework. They must submit monthly returns to the CBN by the 10th day of each month, detailing transaction volumes and values, instances of fraud, the number of active agents, customer complaints, and details of agent training activities. These reports will enable the CBN to monitor the performance and integrity of the agent banking system, identify potential risks, and implement corrective measures as needed.
Non-compliance with the new guidelines will carry significant consequences. The CBN has outlined a range of administrative and regulatory sanctions for defaulting participants, including suspension from onboarding new agents, blacklisting, removal of management personnel, and, in severe cases, revocation of operating licenses. The circular emphasizes that the CBN reserves the right to invoke any or all sanctions against entities that fail to adhere to the new rules, underscoring the apex bank’s zero-tolerance stance on regulatory violations.
The introduction of this comprehensive framework is part of the CBN’s broader strategy to strengthen oversight of agent banking operations and promote financial inclusion across Nigeria. By setting clear standards for transparency, accountability, and operational efficiency, the CBN aims to enhance consumer protection and maintain public trust in the financial services sector. Agent banking has emerged as a critical tool for extending financial services to unbanked and underbanked populations, particularly in rural areas where traditional banking infrastructure is limited. By implementing these measures, the CBN seeks to create a more inclusive financial ecosystem that supports economic growth and empowers individuals and businesses across the country.
The new framework also aligns with global best practices in financial regulation, reflecting the CBN’s commitment to modernizing Nigeria’s financial services sector. By prioritizing real-time transaction processing, secure technology, and robust reporting mechanisms, the CBN is positioning Nigeria’s agent banking system to compete effectively in an increasingly digital and interconnected global economy. The emphasis on consumer protection and transparency is particularly significant in light of growing concerns about fraud and misconduct in the financial sector. By holding agents and financial institutions accountable, the CBN is sending a strong signal that it is committed to maintaining stability and trust in the system.
As Nigeria continues to grapple with the challenges of financial exclusion, the CBN’s new regulatory framework for agent banking represents a proactive step toward addressing these issues. By ensuring that agents operate within a structured and transparent framework, the CBN is paving the way for greater access to financial services, particularly for underserved communities. The requirement for super agents to maintain a presence across all geopolitical zones is a clear indication of the CBN’s focus on equitable distribution of financial services, ensuring that no region is left behind.
The implementation of these guidelines is expected to have far-reaching implications for Nigeria’s financial services sector. By fostering a culture of accountability and transparency, the CBN is not only protecting consumers but also creating an enabling environment for financial institutions to thrive. The emphasis on technology-driven solutions, such as real-time transactions and geo-fenced devices, reflects the CBN’s recognition of the transformative potential of digital innovation in financial service delivery. As the April 1, 2026, deadline for certain provisions approaches, financial institutions and agents will need to take proactive steps to ensure compliance with the new rules.
In conclusion, the CBN’s updated regulatory framework for agent banking is a landmark development in Nigeria’s quest for financial inclusion and economic empowerment. By addressing key challenges in the agent banking ecosystem, the CBN is laying the foundation for a more resilient, transparent, and inclusive financial sector. As the framework takes full effect, it is expected to drive significant improvements in service quality, consumer trust, and access to financial services, ultimately contributing to Nigeria’s broader economic development goals.
