The Central Bank of Nigeria (CBN) has issued a new directive to regulate agent banking operations in the country, with the aim of encouraging electronic payment adoption and enhancing Nigeria’s cashless economy drive. The circular, signed by Oladimeji Yisa Taiwo for the Director of the Payments System Management Department, was released on Tuesday, December 17, 2024.

Key among the new measures is a daily cash-out limit of N100,000 per customer for transactions conducted by Point of Sale (POS) agents. This policy is part of the CBN’s efforts to streamline agency banking operations, prevent fraud, and improve monitoring within the sector.

In addition to the individual customer limit, POS agents are restricted to a total daily cash-out transaction limit of N1,200,000. Customers are also subject to a weekly cash withdrawal cap of N500,000.

The CBN has mandated that agents clearly separate their banking services from other merchant activities and use the approved Agent Code 6010 for all transactions. All agency banking activities must be conducted through float accounts maintained with the principal institutions, which are required to monitor accounts linked to agents’ BVNs to identify any unauthorized banking activities.

Agents are also required to connect their terminals to the Payments Terminal Service Aggregator (PTSA) and send daily transaction reports to the Nigerian Inter-Bank Settlement System (NIBSS) electronically.

The CBN emphasized that all principals remain responsible for the actions and omissions of their agents in relation to banking services. To ensure compliance, the apex bank will conduct periodic oversight, including backend configuration checks. Violations of these directives will attract severe penalties, including monetary fines and administrative sanctions.

  1. Daily cash-out limit: POS agents must ensure no individual customer withdraws more than N100,000 daily, regardless of the channel.
  2. Cumulative daily limit for agents: Each agent’s total cash-out transactions should not exceed N1,200,000 daily.
  3. Weekly withdrawal cap for customers: Customers are restricted to a maximum cash withdrawal of N500,000 per week.
  4. Separation of agent and merchant activities: Agents are required to clearly demarcate their banking services from other merchant activities and use the approved Agent Code 6010 for all transactions.
  5. Exclusive use of float accounts: All agency banking activities must be conducted through float accounts maintained with the principal institutions.
  6. Mandatory monitoring of agent accounts: Institutions must monitor accounts linked to agents’ BVNs to identify any unauthorized banking activities outside designated float accounts.
  7. Real-time transaction reporting: Agents are required to connect their terminals to the Payments Terminal Service Aggregator (PTSA) and send daily transaction reports to the Nigerian Inter-Bank Settlement System (NIBSS) electronically. The reporting template will be provided by the CBN.

While the new policy aims to enhance security and accountability, it may pose challenges for POS operators who rely on high-volume transactions to sustain their businesses. Customers may also face inconveniences due to the reduced cash availability, particularly in rural areas with limited access to banks, especially during this festive period.

The CBN has urged stakeholders to adhere to the guidelines and contribute to the realization of a more robust and cashless financial system in Nigeria. This intervention comes as part of broader efforts by the CBN to advance its cashless policy and address the challenges posed by the heavy reliance on cash in Nigeria’s economy.

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