A storm is brewing in Nigeria’s financial services sector as Point-of-Sale (PoS) operators raise alarm over the Central Bank of Nigeria’s (CBN) new regulatory framework, which they fear could cripple thousands of small-scale businesses across the country.
The fresh guidelines, released by the apex bank last week, cap daily cumulative transactions per PoS agent at ₦1.2 million, limit individual transactions to ₦100,000 per customer, and enforce a new “exclusivity” rule that restricts agents to operating under only one financial service provider.
The National President of the Association of Mobile Money and Bank Agents of Nigeria (AMMBAN), Fasasi Sharafadeen, warned that the policy, if implemented in its current form, could render nearly 40 per cent of PoS agents jobless.
“About 40 per cent of PoS operators will be out of business,” Sharafadeen said. “Many agents currently operate multiple terminals from different service providers to ensure efficient service delivery. This exclusivity rule will destroy that balance and hurt both agents and customers.”
Under the new framework, the CBN also mandates that all agent banking transactions be conducted through a dedicated account or wallet maintained by the principal financial institution. Any agent caught using non-designated accounts risks sanctions, blacklisting, or termination of agreement.
Agents Decry Loss of Flexibility
Sharafadeen noted that many PoS operators rely on multiple platforms to serve customers efficiently, especially when one network fails.
“Some agents use different providers because one might offer faster withdrawals while another provides cheaper transfers. Customers benefit from this flexibility. The new rule takes that away,” he said.
He also described the proposed 10-metre geofencing requirement—which restricts agents to a fixed operational location—as “impractical and counterproductive,” particularly for rural areas where banking services are scarce.
The association further criticised the exclusion of services such as account opening and card issuance, which have long been key income streams for agents.
“A lot of agents make more money from account opening and card issuance than from cash-in and cash-out services,” Sharafadeen said. “By removing these, the CBN is taking away our alternative income sources.”
Operators Fear Hardship
Across Lagos and other states, several PoS agents expressed deep frustration over the new limits.
Oluwatobi, a PoS operator who also runs a provisions shop, said the ₦1.2m cap would significantly affect his business.
“Sometimes I dispense over ₦1.5m in a day. This restriction will reduce my income. We even buy cash to stay in business. The CBN doesn’t understand how the system works at the grassroots,” he said.
Another operator, Akiyemi Olabode, who operates three PoS terminals in Ikeja, lamented that the rule would “cripple small agents and increase unemployment.”
Similarly, Grace, a PoS operator in Mushin, described the policy as “anti-business,” warning that it could worsen the hardship faced by women who depend on PoS transactions to support their families.
“If the CBN limits what I can give out daily, I’ll lose customers. Many of us started this business to survive,” she added.
Economists Split Over Policy
Experts appear divided over the CBN’s move.
Former CBN Director, Prof. Akpan Ekpo, urged Nigerians to give the policy time, noting that the central bank’s intentions were likely centred on promoting financial security and reducing cash dependency.
“Before PoS, businesses survived on bank transactions. The CBN should, however, focus on making ATMs more functional,” he told Sunday PUNCH.
Dr Olawale Ajayi, Head of Strategy at Lagos Business School, argued that the new regulations could strengthen accountability if properly implemented.
“Linking agents’ BVNs and Tax Identification Numbers will help trace fraud and impersonation. Proper regulation can make the system more transparent,” he said.
However, the National Chairman of the Progressive Shareholders Association of Nigeria, Boniface Okezie, condemned the CBN’s approach, calling it “regulatory overreach.”
“The CBN should stop micromanaging small businesses. They should focus on stabilising the naira and ensuring clean currency circulation, not stifling entrepreneurs,” he said.
Fintech Firms May Suffer
Sharafadeen further warned that the exclusivity clause could entrench the dominance of a few major fintech companies, which are already controlling the market.
“Out of over 200 service providers, only five control about 70 per cent of all registered agents,” he explained. “This policy could further consolidate their monopoly, driving smaller firms out of business.”
As the CBN prepares to begin enforcement of the new rules from April 1, 2026, operators, economists, and fintech stakeholders are calling on the apex bank to revisit the guidelines to avoid undermining Nigeria’s financial inclusion drive.
“The CBN’s objectives are noble,” Sharafadeen concluded, “but the implementation is flawed. Without consultation and flexibility, this policy could end up doing more harm than good.”
