Point of Sale (PoS) operators across Nigeria have expressed serious concern that the Central Bank of Nigeria’s (CBN) new agent banking policy could drive many small fintech companies out of business and pave the way for monopolies.
Under the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), the operators said the rule, which mandates PoS agents to operate exclusively with a single financial institution or super-agent, will distort market competition and expose thousands of small operators to financial losses.
They argued that restricting agents from offering multiple services across various platforms such as PalmPay, OPay, and Moniepoint could weaken one of Nigeria’s most vibrant informal business sectors.
This sector currently employs millions and fuels the country’s cashless economy.
The National President of AMMBAN, Mr. Fasasi Sharafadeen told Nairametrics that the new rules requiring agents to work exclusively with one financial institution or super-agent would have devastating effects on over 1.9 million PoS agents nationwide.
He warned that such a policy could create monopolies, giving larger fintechs an unfair advantage over smaller players.
“Out of about 200 service providers in Nigeria today, only five control nearly 70% of the agent market. Making operations exclusive will further concentrate power in their hands,” he said.
Sharafadeen explained that the shared agent model had enabled smaller fintechs to thrive by allowing agents to serve customers using multiple platforms.
“That is the uniqueness of the PoS business and why over 80% of Nigerians are no longer going to the banks. They are visiting agent locations because they are sure that if OPay service is down, PalmPay will not, if PalmPay is down, Moniepoint will not,” he said.
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According to him, many small fintechs survive because agents can use multiple platforms, and enforcing exclusivity would force agents to drop other terminals and stick with bigger players.
He also pointed out that such exclusivity would tie agents to a single service provider, leaving them vulnerable to network failures and poor service delivery.
Another major player in the PoS industry, Mr. Chigozie Anayo, shared similar fears, warning that the new rules could trigger large-scale divestment and job losses.
“If agents are forced to pick one principal, most fintechs will struggle to retain their current agent base. Some may even exit the market,” he said.
Beyond exclusivity, the new CBN framework also introduces tougher branding and operational rules.
Agents must now operate from clearly branded kiosks affiliated with their chosen financial institution and are discouraged from running multiple businesses at the same location.
Sharafadeen described this as counterproductive, explaining that many PoS operators cannot survive under such conditions.
He said most agents operate on loans and have daily repayment obligations, which require them to run additional businesses to stay afloat.
“Many agents combine PoS services with petty trading to survive. Telling them to only do PoS transactions is like asking them to abandon their source of livelihood,” he said.
He further criticized the CBN’s policymaking approach, suggesting that it was detached from ground realities.
“Many of those making these policies have never operated in the field. You can’t regulate an informal sector effectively from an office desk,” he added.
The policy also comes after a previous CBN directive mandating the geo-tagging of all PoS terminals across the country, another move many industry players consider restrictive.
The directive, issued earlier in September, required the use of ISO 20022 messaging for payments and mandated that PoS devices support geolocation and geofencing, limiting their operational range to roughly 10 metres from registered business addresses.
Terminals that fail compliance checks scheduled for October 20, 2025, will be deactivated.
Nairametrics earlier reported that most PoS terminal issuers in Nigeria, mainly fintech companies, are preparing for potential service disruptions and revenue declines as the CBN’s earlier October 31 deadline for mandatory geo-tagging approaches.
With over 8.3 million registered PoS terminals nationwide and 5.9 million already deployed as of March 2025, the scale of the compliance exercise remains enormous.
However, the deadline for enforcing this rule has now been extended to April 1, 2026, giving stakeholders more time to comply.
In its circular (PSP/DIR/CON/CWO/001/049) issued on October 6, 2025, and signed by Musa I. Jimoh, Director of Payments System Policy, the CBN announced new compliance measures designed to strengthen oversight and align with Nigeria’s financial inclusion goals.
According to the circular, all agent banking transactions must be conducted through a dedicated account or wallet maintained by the principal financial institution to ensure transparency and regulatory oversight.
The CBN warned that any agent using non-designated accounts for transactions would be in breach of the regulation and subject to sanctions.
Additionally, agents found guilty of misconduct or fraud will be blacklisted or have their contracts terminated.
The new framework also limits individual customer transactions to N100,000 daily and mandates that PoS devices be geo-fenced to prevent unauthorized mobility.
The CBN confirmed that enforcement of the new agent location and exclusivity regulations will officially begin on April 1, 2026.
regulations will officially begin on April 1, 2026.
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Image Credit: Nairametrics
