The Central Bank of Nigeria (CBN) has tightened eligibility rules for Point-of-Sale (PoS) agents, barring individuals with recent non-performing loans, watch‑listed Bank Verification Numbers (BVNs), or a history of financial misconduct from operating in the fast‑growing agent banking sector.
In guidelines issued on October 6, 2025, the regulator said anyone with a non‑performing loan with a financial institution in the previous 12 months will be ineligible for appointment as an agent. The CBN said principals must verify credit status through licensed credit bureaus to close loopholes that have allowed people with bad debts to resurface as PoS operators.
The rules also disqualify individuals whose BVNs are watch‑listed, those blacklisted for financial misconduct, persons convicted of felonies or fraud, and anyone declared bankrupt or operating a company that has filed for insolvency. The measures are intended to strengthen the integrity of last‑mile operators who handle cash and digital transactions for underserved communities.
Minimum standards and due diligence
Prospective agents must demonstrate the capacity to perform permitted activities such as deposits, withdrawals and bill payments, submit all mandatory information required under CBN regulations, obtain relevant local authorisations where necessary, and — for individuals — be at least 18 years old and of sound mind.
The central bank also directed principals — banks, super‑agents and licensed payment service providers — to conduct comprehensive due diligence before onboarding agents. Required checks include verification of credit history, criminal records, sources of funds, business addresses and any pre‑existing relationships that could pose risks.
Scale and risks
Agent banking has expanded rapidly in Nigeria. As of March 2025 there were more than 8.3 million registered PoS terminals and about 5.9 million deployed devices, with agents handling billions of naira in transactions each month. The sector has helped broaden financial inclusion but has also seen rising cases of fraud, theft and unlicensed operators exploiting oversight gaps.
The CBN said the new criteria are part of broader reforms that include mandatory geo‑tagging of PoS devices, transaction limits, real‑time settlement requirements and stiffer sanctions for default. In August 2025 the bank ordered operators to geo‑tag all PoS devices within 60 days and to align with the ISO 20022 messaging standard; the latest guidelines extended the deadline for compliance to April 1, 2026.
Industry impact
While the measures aim to boost consumer protection and restore trust in the agent network, industry participants face higher compliance costs as principals incorporate credit checks, BVN verifications and legal clearances into onboarding processes. The CBN says tighter controls are necessary to reduce fraud and concentration of risk at the retail edge of the financial system.
