By Muhammad Sal
Point-of-Sale (PoS) operators across Nigeria are raising alarms over the Central Bank of Nigeria’s (CBN) recently issued agent banking regulation, warning it could force thousands of small fintech businesses out of operation and concentrate market control within a few large firms.
The new policy, effective October 6, 2025, mandates that PoS agents work exclusively with one financial institution or super-agent, barring them from servicing multiple platforms.
On the other hand, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has condemned the exclusivity rule for distorting competition in a sector critical to financial inclusion.
AMMBAN’s National President, Mr. Fasasi Sharafadeen, expressed likely monopoly risks, noting that about 70% of the over 1.9 million agents in Nigeria are currently controlled by just five major service providers out of approximately 200 in the market.
He said the new policy threatens to disproportionately advantage these larger players, undermining the survival of smaller fintechs that serve Nigeria’s vibrant informal economy.
The restrictions limit daily transactions for each PoS terminal to ₦1.2 million, a move that operators say ignores the realities of their operations. Many agents, especially those combining PoS services with retail trading in rural and semi-urban areas, rely heavily on higher cash flows to meet customer demand.
Lagos-based operator Oluwatobi described the policy’s impact on his savings and business operations as severe, explaining that his daily volumes sometimes exceed the new limit, which will affect his income and ability to serve customers.
Another operator managing multiple terminals lamented the policy as a threat to a crucial steady income source for many Nigerian families.
Women operators, a significant demographic among PoS agents, also decried the rule as anti-business, citing fears of income losses due to restricted cash withdrawal limits that could alienate market traders and customers who transact in bulk. They have called on the CBN to adopt more flexible measures that better reflect cash needs across Nigeria’s diverse regions.
The CBN’s regulation aims to tighten control over agent banking operations to curb fraud, improve accountability, and enhance the quality of financial services. However, experts are divided on the best approach.
Former CBN Director Akpan Ekpo emphasized the need to improve Automated Teller Machine (ATM) functionality nationwide, suggesting that restrictions on PoS agents might negatively impact cash accessibility where ATMs remain sparse.
This policy development comes amid rapid growth in Nigeria’s fintech sector, which surged by 70% in recent years, with agent banking playing a pivotal role in driving cashless transactions and financial inclusion in underserved communities.
The new exclusivity requirement may slow progress by shrinking operational viability for smaller fintech operators who form the backbone of Nigeria’s informal economy.
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