The Central Bank of Nigeria (CBN) has introduced a daily transaction limit of N1.2 million for Point of Sales (PoS) agents as part of its measures to promote a cashless economy.
This was revealed in the apex bank’s “Circular on Cash-Out Limits for Agent Banking Transactions,” released on Tuesday.
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The circular, signed by Oladimeji Yisa Taiwo on behalf of the Director of the Payments System Management Department, explained the necessity of the policy. “The Bank hereby releases the following policy interventions, which have become necessary to enhance the use of electronic payment channels for agency banking operations,” it read.
Under the new policy, a single agent’s daily cumulative cash-out limit is capped at N1.2 million, while the daily cash withdrawal limit per customer is pegged at N100,000. Additionally, total withdrawals across all channels for each customer must not exceed N500,000 per week.
To ensure compliance, agent banking terminals are now required to be connected to a Payment Terminal Service Aggregator (PTSA). The CBN also directed that “all daily transactions per agent, including withdrawals, limits of transactions, and balances in the float accounts of each agent, are sent electronically to NIBSS as a report to the CBN. The template of this report will be sent to principals.”
The policy further mandates agents to apply the approved Agent Code 6010 for agent banking activities, clearly distinguishing such services from merchant activities.
According to the Nigerian Financial Services Report, agency banking through PoS and mobile money has become a critical driver of financial inclusion, especially for individuals without access to formal banking systems. Data from the Nigeria Interbank Settlement System Plc indicates that as of July 2024, there were 3.05 million deployed PoS machines and 4.06 million registered PoS terminals nationwide.
A Bloomberg report recently highlighted the significant role of PoS agents, describing how they bridge the gap left by Automated Teller Machines (ATMs). With over two million mobile agents operating in the country, they meet most of the daily transaction needs of Nigerians.
The International Monetary Fund also reported that Nigeria has about 1,600 agents per square kilometre, largely fueled by the growth of fintech companies such as OPay, Paga, and Moniepoint. However, the CBN has intensified its regulation of agents. In a previous circular issued on December 3, it warned banks of sanctions if they fail to ensure ATM functionality.
