The Central Bank of Nigeria (CBN) has introduced a daily transaction cap of N1.2 million for Point of Sale (PoS) agents, as part of a broader initiative to promote a cashless economy and strengthen financial inclusion.
This new restriction, announced in the CBN’s Circular on Cash-Out Limits for Agent Banking Transactions late Tuesday night, aims to curb the over-dependence on cash transactions and encourage the use of electronic payment systems.
Agent banking has become a critical tool in extending financial services to Nigeria’s underbanked populations, especially in remote areas. With over 3 million PoS terminals deployed across the country as of mid-2024, PoS agents have emerged as the backbone of financial transactions for millions of Nigerians without bank accounts.
According to the Nigeria Interbank Settlement System Plc, there are also over 4 million registered PoS terminals, highlighting the sector's rapid growth.
Under the new policy, each agent's cumulative daily transaction limit is set at N1.2 million, while individual customers can withdraw up to N100,000 daily through agent terminals.
Additionally, there is a weekly withdrawal cap of N500,000 per customer across all channels. These measures are designed to both regulate cash flow and push customers toward more efficient, digital payment methods, in line with CBN’s financial modernization goals.
A key feature of the policy is the mandatory use of a Payment Terminal Service Aggregator (PTSA) for all agent terminals. This will ensure that transaction data, including cash-out limits and agent balances, is electronically reported to the Nigeria Interbank Settlement System (NIBSS) and shared with the CBN.
The goal is to bring more transparency and oversight to agent banking operations, a sector that has experienced rapid growth but is still prone to misuse.
Despite the restrictions, agent banking remains a vital service, particularly in the absence of sufficient ATM infrastructure in many parts of the country. According to a recent report, mobile agents have filled the void left by traditional Automated Teller Machines, helping to drive financial inclusion across Nigeria’s vast and often underserved population.
The growth of fintech companies like Opay, Paga, and Moniepoint has fueled this development, with Nigeria now home to one of the highest concentrations of agents in the world, with around 1,600 agents per square kilometer.
This move by the CBN is said to be part of a wider strategy to reduce reliance on cash, improve financial monitoring, and bolster the use of digital payment systems across the country.
