CBN mandates dedicated accounts for POS operators to combat fraud
Story by Susan Mbamah
The Central Bank of Nigeria (CBN) has directed all Point-of-Sale (POS) operators and banking agents across the country to maintain dedicated accounts or wallets exclusively for agent banking transactions.
This move is part of a broader effort to tighten oversight, ensure transparency, and protect customers from financial fraud.
The directive is a core component of the newly released “Guidelines for the Operations of Agent Banking in Nigeria (October 2025)”.
New Guidelines Take Immediate Effect
The CBN’s directive, dated October 6, 2025, took effect immediately. In a circular addressed to all deposit money banks, other financial institutions, and payment service providers, Musa Ibrahim, CBN Director, Payment System Policy, stated that the guidelines were issued in furtherance of the apex bank’s mandate for economic stability and deepening the financial system.
The guidelines explicitly state the new requirement for POS operators: “Agents shall maintain a dedicated account or wallet for agent banking transactions only. Any transaction conducted outside the dedicated account or wallet shall be regarded as violating these Guidelines.”
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Enforcing Oversight and Traceability
According to the CBN document, the main goals of the new requirement are to strengthen oversight, ensure the traceability of all transactions, and safeguard customers against the misuse of funds and fraudulent activities.
Musa Ibrahim noted that the guidelines also aim to:
Establish minimum standards for operating agent banking in Nigeria.
Enhance agent banking to provide financial services and promote financial inclusion.
Encourage responsible market conduct.
Improve service quality in Agent Banking operations.
Stiff Sanctions for Non-Compliance
The new regulation also grants the CBN the authority to impose severe penalties on both agents and their principals (the financial institutions) for non-compliance.
The CBN stressed that financial institutions bear the responsibility of ensuring their appointed agents adhere fully to the new requirement, noting that non-compliance will be treated as a breach of regulatory standards.
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To reinforce accountability, the guideline states that the CBN may impose:
Monetary penalties.
Suspension of an agent’s operation.
Revocation of approval.
Blacklisting of agents and their principals for non-compliance.
The guidelines further warn: “Where a principal fails to take remedial action against an erring agent, the Bank may impose additional sanctions, including the suspension or revocation of the principal’s licence to operate agent banking services.”
The CBN also emphasised that the sanctions will extend to agents involved in misconduct or fraudulent practices. Blacklisted agents or super agents will be permanently barred from operating in any financial institution in the country.
“The Bank shall maintain and publish a list of blacklisted agents and principals.
Any person or institution blacklisted under these Guidelines shall not be permitted to operate as an agent or principal in the Nigerian financial system,” the guideline concluded.
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