CBN's PoS Overhaul: Exclusive Partnerships to Curb Fraud, Boost Trust

The Central Bank of Nigeria (CBN) has introduced revised guidelines for Point-of-Sale (PoS) operators, mandating exclusive partnerships with a single financial institution and imposing stricter operational standards to enhance financial stability and reduce fraud. Effective immediately, the guidelines-formally titled Guidelines for the Operations of Agent Banking in Nigeria-replace all previous regulations and include a phased enforcement timeline, with exclusivity and location rules set to take effect on April 1, 2026. As of March 2025, Nigeria had 8.36 million registered PoS terminals, with 5.9 million actively in usetitle1^[1].

Under the new framework, PoS agents must operate exclusively for one principal-either a bank or fintech-prohibiting multi-principal arrangementstitle2^[2]. This exclusivity aims to streamline accountability and mitigate risks associated with overlapping responsibilities. All transactions must now occur through a dedicated agent account or wallet linked to the principal institution, with non-compliance classified as a regulatory offense punishable by blacklisting or terminationtitle3^[3]. Additionally, the CBN has imposed daily and weekly transaction limits: agents face a ₦1.2 million daily cash-out cap, while individual customers are restricted to ₦100,000 daily and ₦500,000 weekly for cash-outs and bill paymentstitle4^[4].

The guidelines also mandate real-time transaction processing and fixed-location operations, with PoS terminals geo-fenced to registered premisestitle5^[5]. Non-compliance with geo-tagging requirements, introduced in August 2025, could result in terminal deactivation or penalties. Principals and super agents must ensure devices are geo-locked, with super agents required to maintain at least 50 agents across Nigeria's six geopolitical zonestitle6^[6]. Agents seeking to relocate or close operations must secure prior written approval and provide a 30-day public notice to customerstitle7^[7].

To strengthen oversight, the CBN has introduced mandatory training for agents twice annually, covering fraud prevention, customer service, and financial literacytitle8^[8]. Financial institutions must submit monthly reports to the CBN by the 10th of each month, detailing transaction volumes, fraud incidents, and agent compliancetitle9^[9]. Non-compliance risks severe penalties, including fines ranging from ₦2 million to ₦20 million, suspension of onboarding new agents, or license revocationtitle10^[10].

The revised rules also tighten eligibility criteria, disqualifying applicants with unpaid loans, criminal records, or blacklisted Bank Verification Numbers (BVNs)title11^[11]. Businesses must demonstrate tax compliance, registration, and sufficient capital to operate. These measures aim to curb fraud and ensure financial stability in Nigeria's rapidly expanding agent banking sector, which processes over ₦10 trillion in transactions annually.

The CBN's enforcement strategy balances compliance with financial inclusion, extending deadlines for location and exclusivity rules to April 1, 2026, to allow operators time to adapt. While the reforms may challenge smaller operators requiring technological upgrades, they are expected to enhance consumer trust and reduce fraud. Industry analysts note that existing PoS devices with GPS modules may require reconfiguration rather than full replacement, mitigating costs.