PoS Operators Warn CBN’s New Agent Banking Rule Could Crush Small Fintechs, Create Monopoly Risks in Nigeria
Point of Sale (PoS) operators across Nigeria have expressed deep concern over the Central Bank of Nigeria’s (CBN) newly released agent banking regulations, warning that the policy could push small fintech firms out of the market. The rule, which requires PoS agents to operate exclusively under a single financial institution or super-agent, has been described by operators as a major setback to one of Nigeria’s fastest-growing informal business sectors. Many fear the move will shrink opportunities for smaller fintechs and create monopolies dominated by a few big players.
According to the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), the exclusivity clause would distort healthy competition and undermine financial inclusion efforts. AMMBAN’s National President, Fasasi Sharafadeen, said over 1.9 million PoS agents depend on flexible partnerships with multiple platforms like PalmPay, OPay, and Moniepoint. “This shared agent model is what keeps the business alive. If OPay is down, PalmPay is up; if PalmPay is down, Moniepoint works. Forcing agents to choose one platform could destroy that balance,” he explained. Sharafadeen added that about 200 fintech service providers currently exist, but five already control nearly 70% of the market — a figure likely to increase under the new rule.
Beyond exclusivity, the CBN’s new framework introduces tighter operational rules, including mandatory branding and restrictions on running multiple businesses from one location. Many PoS agents, who combine their services with petty trading to survive, say this directive is unrealistic. “Most of us operate on loans and need other income streams to repay daily commitments. Asking us to stop selling other goods is like cutting off our livelihood,” one operator said. Industry players argue that policymakers often design such rules without understanding field realities.
The latest directive also follows the CBN’s controversial geo-tagging policy, which mandates that all PoS terminals operate within a 10-metre radius of their registered addresses. The apex bank said the rule, which takes effect April 1, 2026, aims to enhance transparency and curb fraud. However, fintech firms warn that the exercise—covering over 8.3 million registered terminals—could lead to massive service disruptions. Many operators fear that combining geo-tagging with exclusivity could make PoS operations overly restrictive and drive smaller fintechs out of business entirely.
Under the new circular (PSP/DIR/CON/CWO/001/049), signed by Musa I. Jimoh, the CBN also capped daily customer transactions at ₦100,000, and mandated all agent banking transactions to pass through designated accounts for compliance and monitoring. While the CBN insists the measures will strengthen oversight and curb fraud, critics argue the policy risks reversing years of progress in digital financial inclusion. For now, industry stakeholders are urging the CBN to review the guidelines and engage with fintech operators to find a more balanced solution that sustains innovation and livelihoods.
source: nairametrics