CBN Issues New Guidelines to Strengthen Agent Banking Operations

The Central Bank of Nigeria (CBN) has released updated guidelines for the operations of agent banking in the country, aimed at strengthening the regulatory framework and promoting safer, more inclusive financial services.

In the circular dated October 6, 2025, the apex bank explained that the review was necessitated by the rapid growth of agent banking and the sophistication of financial technologies driving it. The new policy consolidates all previous regulations issued in 2013 and 2015 into a single document that addresses emerging risks, operational standards, and compliance obligations for stakeholders.

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According to the document, the revised framework seeks to enhance financial inclusion, improve service delivery, and establish minimum standards for agent banking operations across all licensed financial institutions. It also introduces clearer roles for key stakeholders — including principals, super agents, and payment terminal service aggregators — to ensure accountability within the system.

Under the new guidelines, agents are required to operate only through dedicated accounts or wallets with their principals, while financial institutions must publish an updated list of all approved agents and their locations. The CBN also mandates that all transactions be conducted in real time and within set daily limits, with a maximum cash-out limit of ₦1.2 million per agent.

The apex bank further outlined strict anti-money laundering (AML), counter-terrorism financing (CFT), and consumer protection provisions, including mandatory training for agents, enhanced data security requirements, and faster complaint resolution timelines.

In addition, the circular prescribes stiff penalties for violations. Institutions found operating without a valid super-agent licence may be fined not less than ₦10 million, while breaches such as late rendition of returns or branding violations attract fines ranging from ₦2 million to ₦5 million and additional daily charges until rectified.

Agent banking introduced by the CBN in 2013 allows licensed financial institutions to provide banking services through third-party agents, thereby extending access to underserved and remote communities. The model has since become a major driver of Nigeria’s financial inclusion agenda, expanding digital payment adoption and improving cash accessibility nationwide.

The CBN said the updated framework was issued under its mandate to maintain a safe and stable financial system and to ensure that agent banking remains a credible channel for extending banking services to underbanked and rural populations.