The Central Bank of Nigeria (CBN) has announced new operational guidelines for Point-of-Sale (PoS) operators, placing a daily transaction limit of ₦1.2 million per agent and ₦100,000 per individual customer.
While some see it as a move to regulate cash flow and curb financial abuse, others fear it could squeeze small operators and reduce access to financial services in rural areas.
Understanding the New Limit
Under the new framework, PoS agents can no longer conduct cash-out transactions beyond ₦1.2 million in a single day.
The CBN says this ceiling is meant to promote accountability and ensure that PoS operations are used for genuine financial services, not as informal cash hubs that undermine the formal banking system.
In addition, all PoS operators must use a dedicated account provided by their principal financial institution for all transactions.
The regulator frowns at the use of personal or non-designated accounts for agent banking, citing risks of money laundering, fraud, and weak oversight.
Geo-Tagging and Supervision
A major change is the requirement for geo-tagging, that is, linking every PoS terminal to a specific, registered business location.
This means agents can no longer move devices across towns or states at will. The CBN believes this will enhance traceability, help law enforcement, and reduce cases of fraud where rogue agents disappear after collecting funds.
Also, agents can no longer relocate or close their business without written approval from their sponsoring institution, and they must display a 30-day notice before any such move.
Protecting Consumers, Tightening Oversight
The CBN said these new limits and controls are part of efforts to strengthen consumer protection and clean up the agent banking ecosystem, which has grown rapidly since the cashless policy took root.
Over the years, the PoS business has become a crucial pillar of financial inclusion, especially in rural and semi-urban areas. However, it has also faced rising incidents of fraud, impersonation, and unlicensed operations, with some agents exploiting loopholes to carry out unregulated cash transfers or money laundering.
The apex bank insists that tightening rules is not to stifle business but to make the system safer for users.
By enforcing structured reporting and compliance, the CBN hopes to build greater trust in digital financial services.
What This Means for Operators
For small-scale PoS agents, the new ₦1.2m limit may initially appear restrictive, especially in high-traffic areas where daily volumes often exceed that threshold.
However, industry watchers note that the regulation might push operators to formalize their businesses, expand through agent networks, or partner with licensed super agents who have nationwide reach.
Super agents are also required to maintain at least 50 active agents across Nigeria’s six geopolitical zones, an effort to spread financial access evenly across the country.
The Bigger Picture
Beyond numbers, the CBN’s decision reflects a growing desire to balance financial inclusion with financial integrity.
As Nigeria continues to digitize payments, regulators are walking a fine line between encouraging innovation and preventing abuse.
By capping transaction limits and demanding stronger accountability, the apex bank is signaling a shift from rapid expansion to sustainable regulation, where the focus is not just on how many agents exist, but how transparent and compliant they are.
