The Central Bank of Nigeria (CBN) has introduced new and stricter guidelines for agent banking operations, effectively barring individuals with unpaid debts or blacklisted Bank Verification Numbers (BVNs) from functioning as Point of Sale (PoS) agents across the country.

 

The directive is part of CBN’s latest effort to sanitize the fast-growing PoS and agent banking sector, which has seen rapid expansion but also increasing cases of fraud, financial misconduct, and customer exploitation.

 

 

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Stricter Screening for PoS Operators

 

According to the new CBN guidelines, individuals who owe financial institutions or have records of non-performing loans will no longer be eligible to register or continue as PoS agents.

Also disqualified are persons whose BVNs have been blacklisted or placed on the CBN’s watch-list for fraudulent or unethical financial behavior.

The regulation applies to both new applicants and existing PoS operators, who are expected to undergo revalidation under the new framework.

 

CBN stated that the move aims to ensure only trustworthy, financially responsible individuals handle sensitive payment transactions within Nigeria’s financial ecosystem.

 

 

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Categories of Disqualified Persons

 

Under the new rule, the following categories of people and entities will be restricted from agent banking operations:

 

Individuals with unpaid or non-performing loans with banks or financial institutions.

 

Persons whose BVNs have been blacklisted or are under investigation for fraud or financial malpractice.

 

Individuals or entities declared bankrupt or insolvent.

 

Those previously convicted of financial crimes.

 

Organizations that have failed to meet due diligence and compliance standards.

 

 

This is consistent with the CBN’s broader “Revised Guidelines for Blacklisting for Banks and Other Financial Institutions,” which empowers financial institutions to maintain records of persons involved in financial misconduct and restrict them from further participation in regulated financial activities.

 

 

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Why the CBN Is Tightening the Rules

 

The PoS business has become one of Nigeria’s fastest-growing financial sectors, providing millions of people—especially in rural and semi-urban areas—access to cash withdrawal, transfer, and payment services.

 

However, the growth has also attracted a surge in fraudulent operators, fake agents, and misuse of customer data. Reports of cloned cards, overcharging, and funds diversion have prompted calls for stricter oversight.

 

According to the apex bank, the new rule will restore confidence, enhance transparency, and ensure financial inclusion efforts are not undermined by criminal activities within the sector.

 

 

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Implementation Timeline and Compliance

 

While the new policy takes effect immediately, CBN has given a compliance window for financial institutions and super agents to review and update their records.

Reports suggest that full enforcement is expected to be achieved by April 2026, allowing current PoS agents time to meet all new compliance requirements.

 

Banks and fintech companies offering agency services are now mandated to carry out enhanced due diligence and continuous monitoring of their agents’ BVNs, credit history, and background checks.

 

 

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Implications for PoS Agents

 

For many small business owners operating PoS terminals, this development could have mixed consequences.

While it strengthens customer trust and reduces fraud, agents with unresolved debts or pending credit issues may be forced out of business until they clear their financial records.

 

Experts also warn that stricter screening could temporarily reduce the number of active PoS points, especially in rural communities, but note that long-term benefits outweigh the short-term inconvenience.

 

 

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Conclusion

 

The CBN’s new policy signals a renewed commitment to cleaning up Nigeria’s agent banking landscape. By excluding debtors, blacklisted BVNs, and financial offenders from operating as PoS agents, the apex bank aims to safeguard customers’ funds and uphold the integrity of Nigeria’s financial system.

 

Industry watchers believe that, if properly enforced, this initiative will strengthen trust, curb fraudulent practices, and enhance the overall credibility of the nation’s fast-evolving digital payment ecosystem.