The Central Bank of Nigeria (CBN) has announced new restrictions on Point of Sales (PoS) transactions, capping daily transactions for PoS agents at ₦1.2 million and limiting individual transactions via PoS to ₦100,000 daily.
In a circular titled “Circular on Cash-Out Limits for Agent Banking Transactions” released on December 17, 2024, the CBN detailed the policy as part of its broader push toward advancing Nigeria’s cashless economy.
The directive, signed by Oladimeji Yisa Taiwo, Director of the Payments System Management Department, outlined specific measures:
- Weekly Cash-Out Limits: A maximum withdrawal limit of ₦500,000 per customer per week.
- Daily Individual Limit: PoS transactions for individuals must not exceed ₦100,000 daily.
- Cumulative Agent Limit: Agents are restricted to a maximum of ₦1.2 million in daily cash-out transactions.
- Regulated Operations: Agency banking activities must be conducted through approved agent float accounts, demarcated from merchant activities, and utilize the designated Agent Code 6010.
- Real-Time Reporting: Principals are required to electronically report agent transaction details daily to the Nigeria Inter-Bank Settlement System (NIBSS) using a CBN-approved template.
Enforcement and Oversight
The CBN emphasized its commitment to ensuring compliance through regular checks on PoS systems and backend operations. It also warned that principals will be held accountable for any infractions committed by their agents, underscoring the need for strict adherence to the guidelines.
Why This Matters
Agent banking has grown significantly in Nigeria, serving as a critical channel for financial inclusion in rural and urban areas. However, the CBN noted the need for regulation to curb misuse and ensure alignment with the nation’s cashless policy.
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