Level of Sale (PoS) operators have raised an alarm that the Central Bank of Nigeria’s (CBN) new coverage on agent banking might drive many small fintech corporations out of enterprise and create monopolies.
The operators, beneath the Affiliation of Cellular Cash and Bank Brokers in Nigeria (AMMBAN), mentioned the rule, which mandates PoS brokers to work solely with one monetary establishment or super-agent, will distort competitors and expose 1000’s of small operators to losses.
They argued that by limiting brokers from providing a number of providers throughout platforms reminiscent of PalmPay, OPay, and Moniepoint, amongst others, the CBN dangers weakening certainly one of Nigeria’s most vibrant casual enterprise sectors that employs thousands and thousands and drives cashless transactions throughout the nation.
Monopoly fears
Talking with Nairametrics, the Nationwide President of the Affiliation of Cellular Cash and Bank Brokers in Nigeria (AMMBAN), Mr. Fasasi Sharafadeen, mentioned the brand new guidelines, which require brokers to function solely beneath a single monetary establishment or super-agent, could have far-reaching penalties on the over 1.9 million PoS brokers throughout the nation.
He warned that the coverage might create monopolies available in the market, giving bigger fintechs an unfair benefit over smaller gamers.
“Out of about 200 service suppliers in Nigeria as we speak, solely 5 management practically 70% of the agent market. Making operations unique will additional focus energy of their fingers,” he mentioned.
He added that the shared agent mannequin had allowed smaller fintechs to develop and compete, as brokers might serve prospects utilizing a number of platforms.
“That’s the uniqueness of the PoS enterprise and why over 80% of Nigerians are not going to the banks. They’re visiting agent places as a result of they’re certain that if Opay service is down, PalmPay is not going to, if PalmPay is down, Moniepoint is not going to,” he mentioned.
- Based on him, many small fintechs are surviving as we speak as a result of they’ll share brokers, including that lots of them would die if exclusivity is enforced as a result of the brokers must drop their terminals and keep on with the larger gamers.
- He additionally argued that the exclusivity requirement would tie brokers to single service suppliers, leaving them susceptible to community downtimes and poor service supply.
One other high participant within the PoS ecosystem, Mr. Chigozie Anayo, echoed related considerations, saying the brand new guidelines might result in large divestment and job losses.
“If brokers are pressured to choose one principal, most fintechs will wrestle to retain their present agent base. Some could even exit the market,” he mentioned.
Operational restrictions could shrink PoS enterprise
Past exclusivity, the coverage additionally introduces stricter branding and operational necessities. Brokers should now function from clearly branded kiosks tied to their chosen monetary establishment, and are discouraged from operating a number of companies on the similar location
- Sharafadeen described this as counterproductive, noting that many PoS companies can not survive with such restrictions.
- Based on him, most of the brokers are working on loans and have day by day commitments of reimbursement, which requires them so as to add different companies to make ends meet.
“Many brokers mix PoS providers with petty buying and selling to outlive. Telling them to solely do PoS transactions is like asking them to desert their supply of livelihood,” he argued.
He additional questioned the CBN’s strategy to policymaking, suggesting that it was primarily based on theoretical assumptions quite than sensible realities.
“Lots of these making these insurance policies have by no means operated within the subject. You’ll be able to’t regulate an off-the-cuff sector successfully from an workplace desk,” he mentioned.
From geo-tagging to enterprise restriction
The newest coverage shift follows an earlier directive by the CBN mandating geo-tagging of all PoS terminals within the nation, a transfer many see as a limitation to the operations of PoS companies.
Within the directive launched earlier in September, the CBN mandated the usage of ISO 20022 messaging for funds and required units to assist geolocation and geofencing, limiting operational radius to ~10 metres from registered addresses. Terminals that failed the compliance checks scheduled from October 20, 2025, can be deactivated.
- Nairametrics earlier reported that PoS terminal issuers in Nigeria, principally fintechs, are bracing for attainable service disruptions and income losses because the CBN’s earlier October 31 deadline for the obligatory geo-tagging of all PoS terminals approaches.
- With over 8.3 million registered PoS terminals within the nation and 5.9 million already deployed as of March 2025, the size of the train is huge.
- Nevertheless, the deadline for the enforcement of this rule has been prolonged to April 1, 2026, giving trade gamers extra lead time to conform.
Different provisions of the brand new CBN tips
In a round (PSP/DIR/CON/CWO/001/049) launched October 6, 2025, and signed by Musa I. Jimoh, Director of Funds System Coverage, the CBN launched contemporary compliance measures to mirror the rising sophistication of the PoS ecosystem and Nigeria’s push for deeper monetary inclusion.
Beneath the brand new framework, all agent banking transactions have to be performed by a devoted account or pockets maintained by the principal monetary establishment to make sure transparency and higher oversight.
- The CBN warned that any agent discovered utilizing non-designated accounts for operations can be in violation of the regulation and would face sanctions.
- Brokers concerned in misconduct or fraud will likely be blacklisted or have their agreements terminated.
- The framework additional limits particular person customer transactions to N100,000 day by day, whereas agent units have to be geo-fenced to stop unauthorised cellular use.
- The CBN mentioned the implementation of the brand new agent location and exclusivity guidelines would start on April 1, 2026.
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