The Central Bank of Nigeria (CBN) has updated the rules guiding agent banking (POS operators and other bank agents) to make financial services safer, more reliable and accessible. The changes are designed to strengthen security, protect customers and promote financial inclusion.
Key Highlights of the New Rules
1. Stronger Security:
The regulation introduces tighter controls to make transactions safer, improve cash handling and secure agent locations.
2. Consumer Protection:
Measures are included to ensure that customers’ rights are safeguarded, boosting trust and confidence in agent banking.
3. Wider Financial Inclusion:
By improving safety and structure, more Nigerians – especially those in rural areas – can access financial services.
4. Risk Management:
Agents are required to take steps such as proper cash management, security arrangements and insurance cover to reduce risks.
5. Agent Obligations:
Agents must follow Know Your Customer (KYC) and Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) rules, keep customer details private and provide transaction records to their bank.
6. Bank Responsibility:
The financial institution is fully accountable for anything its agents do while offering banking services.
7. CBN Oversight:
The CBN can inspect agent systems, documents and premises at any time to ensure compliance.
8. Data Ownership:
All customer information gathered by agents belongs to the financial institution and must remain confidential.
9. Transaction Limits:
There are now defined limits on the amounts customers can transact to reduce fraud and misuse.
10. Super-Agent Role:
Where super-agents are used, they are expected to monitor and supervise the activities of their sub-agents.
Purpose of the Revision
The overall goal is to build a secure, transparent and trustworthy agent banking system in Nigeria. With clearer rules, stronger monitoring and better risk management, the CBN aims to expand financial access while keeping the banking system safe.
