CBN Introduces New Agent Banking Guidelines to Boost Financial Inclusion and Service Efficiency in Nigeria
The Central Bank of Nigeria (CBN) has unveiled fresh operational guidelines for agent banking, set to take effect on April 1, 2026, in a move designed to strengthen financial inclusion, ensure service quality, and improve regulatory oversight across the sector. The updated framework, detailed in a circular signed by Musa I. Jimoh, Director of the Payments System Policy Department, was issued to all Deposit Money Banks (DMBs), Other Financial Institutions, and Payment Service Providers on October 6, 2025.
According to the apex bank, the new policy aims to set minimum operating standards for agent banking, promote responsible market practices, and consolidate all previous guidelines into a single, more robust regulatory document. The framework also underscores the CBN’s continued effort to maintain stability within the financial system while ensuring that underbanked and rural populations have access to essential banking services.
A key highlight of the regulation includes a daily cash-out limit of ₦1.2 million per agent, a measure designed to curb financial risks and ensure responsible transactions. The CBN also introduced geo-fencing requirements for all agent banking devices, meaning agents must now operate strictly within approved business locations. This step, according to the bank, will help reduce fraud, improve transaction traceability, and ensure better compliance monitoring.
In addition to transaction limits, the guidelines clearly define the roles and responsibilities of all stakeholders, including principals, super agents, Payment Terminal Service Aggregators (PTSAs), and the CBN itself. Each category is required to comply with Know Your Customer (KYC), Anti-Money Laundering (AML), and Combating Financing of Terrorism (CFT) standards. The framework also reiterates that all financial institutions must operate within the maximum regulatory limits set by the CBN and may be subject to periodic review.
The CBN emphasized that the review was necessary to address the rapid growth and sophistication of agent banking operations since the introduction of earlier frameworks in 2013 and 2015. It stated that the updated guidelines would help consolidate existing policies, modernize the agent banking ecosystem, and support the CBN’s broader goal of creating a safe, sound, and stable financial environment. By reinforcing accountability and innovation, the apex bank aims to ensure that millions of Nigerians in remote areas can continue to benefit from accessible and secure financial services.
source: arise