CBN agent banking guidelines impose ₦20 million fine for unapproved ownership changes

The Central Bank of Nigeria (CBN) issued new Guidelines for the Operations of Agent Banking in Nigeria on 6 October 2025, setting a minimum fine of ₦20 million, plus ₦500,000 for each day the breach continues, for agent banking operators that alter their ownership structure without its prior approval.

The guidelines, issued under circular reference PSP/DIR/CON/CWO/001/049 and signed by Musa Jimoh, took immediate effect and replace previous agent banking rules, although provisions on agent location and exclusivity apply from 1 April 2026. Any change in ownership, acquisition or merger involving super agents or other stakeholders requires prior CBN approval.

SANCTIONS REGIME

Entities operating without a valid super-agent licence face a fine of not less than ₦10 million plus ₦200,000 a day. Non-permissible agent banking activities attract fines from ₦5 million, daily penalties of ₦100,000 and possible forfeiture of estimated profits. Providing false information to the CBN carries a minimum fine of ₦5 million and possible suspension or removal of the directors involved, while failure to implement controls such as geo-locking of equipment attracts at least ₦5 million plus ₦300,000 a day. Breaches of anti-money laundering and counter-terrorist financing rules carry a ₦10 million fine for the institution and ₦2 million for each board member involved.

TRANSACTION LIMITS

The guidelines cap cash withdrawals through agents at ₦100,000 per customer a day and ₦500,000 a week, with a cumulative limit of ₦1.2 million per agent a day. Agents may serve only one principal financial institution at a time, all transactions must pass through a dedicated agent account or wallet, and terminals must be geo-fenced to the agent's registered location. People with a non-performing loan in the previous 12 months or a watch-listed bank verification number are barred from becoming agents.

“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 states. Nigeria had 8.36 million registered point-of-sale terminals, 5.90 million of them active, as of March 2025, according to the Nigeria Inter-Bank Settlement System.