CBN Tightens Agent Banking Rules: Geo-Tagging Mandatory, Stricter Penalties
The Central Bank of Nigeria (CBN) has implemented new guidelines for agent banking, effective immediately. These guidelines, outlined in Circular PSP/DIR/CON/CWO/001/049 authored by Mr. Musa Itopa Jimoh, Director of the Payments System Policy Department, introduce stricter measures starting April 1, 2026.
Key changes include mandatory geo-tagging (or geo-fencing) of Point of Sale (PoS) terminals by April 2026, with a minimum penalty of N5 million for non-compliance. Ongoing non-compliance will incur an additional daily penalty of N300,000. All PoS terminals must be geo-locked to their registered premises, with sanctions for devices operating outside that area.
Principals and super agents have specific responsibilities. Principals must publish and maintain updated agent registers both online and in physical branches. Super agents must have at least 50 agents spread across Nigeria's six geopolitical zones. Any relocation, transfer, or closure of agent premises requires written approval and a 30-day public notice at the agent location.
The CBN's new guidelines aim to enhance security and transparency in agent banking. Non-compliance penalties have been increased to enforce these changes. The CBN has extended deadlines for some regulations, with stricter elements set to begin on April 1, 2026.
