CBN Bars Loan Defaulters and Blacklisted BVNs from Operating PoS Terminals in Nigeria
The Central Bank of Nigeria (CBN) has introduced stringent new rules that disqualify individuals with bad debts, blacklisted Bank Verification Numbers (BVNs), or records of financial misconduct from operating as Point of Sale (PoS) agents. Released on October 6, 2025, under the Revised Guidelines for the Operations of Agent Banking in Nigeria, the policy seeks to restore integrity and consumer confidence in a sector that has grown rapidly but remains vulnerable to fraud and abuse.
Under the revised framework, anyone with a non-performing loan in the past 12 months is automatically ineligible to become a PoS agent. The CBN stated that all credit information will now be cross-checked through licensed credit bureaus to eliminate loopholes previously exploited by defaulters. Furthermore, individuals with BVNs on watchlists, those blacklisted for financial misconduct, or those convicted of crimes such as fraud or dishonesty will no longer be permitted to operate. The policy also extends to bankrupt persons and insolvent companies, ensuring that only financially responsible operators remain active.
The guidelines outline new minimum standards for eligibility, requiring prospective agents to prove their capacity to handle transactions like deposits, withdrawals, and bill payments. They must also provide complete identification and comply with CBN’s Know Your Customer (KYC) regulations. Principals — including banks, super agents, and payment service providers — are now mandated to perform rigorous background checks, reviewing credit histories, criminal records, and sources of funds before appointing new agents. This layered due diligence aims to eliminate high-risk participants before they enter the financial ecosystem.
Nigeria’s agent banking network has expanded at record speed, with over 8.3 million registered PoS terminals and about 5.9 million deployed as of March 2025. While this growth has boosted financial inclusion, it has also led to rising fraud cases and unlicensed operations. By enforcing credit checks and BVN screening, the CBN hopes to sanitize the PoS industry, curb financial crimes, and enhance consumer trust. However, stakeholders warn that the stricter rules may increase compliance costs for operators who must now integrate real-time verification and credit checks into their onboarding processes.
The new directives form part of broader reforms targeting Nigeria’s payment system, including mandatory geo-tagging of PoS devices, real-time transaction settlement, and stricter sanctions for violations. The CBN had earlier ordered all PoS terminals to be geo-tagged by August 2025, aligning with international ISO 20022 standards. The latest guidelines extend full compliance to April 1, 2026, providing institutions more time to adapt. Still, the apex bank warns that failure to meet the new requirements could result in terminal shutdowns and heavy penalties, signaling its determination to professionalize the agent banking landscape.
source: Nairametrics