The Central Bank of Nigeria has introduced new guidelines for Point-of-Sale operators, including a controversial single-provider rule aimed at curbing fraud, reducing failed transactions, and restoring order across the fast-growing sector.
At the centre of the directive is a requirement that PoS agents must now operate through only one financial institution. Previously, many agents relied on multiple terminals from providers such as OPay, Moniepoint and traditional banks, switching between networks to avoid downtime and maximise earnings.
Under the new framework, that flexibility has been removed. Agents are now required to maintain a dedicated account with a single provider and use only registered devices. They must also operate from approved business locations and comply strictly with transaction limits and Know Your Customer requirements.
The regulator’s objective is to standardise operations and reduce systemic risk within Nigeria’s financial ecosystem.
Pressure mounts on a critical financial channel
Agent banking plays a central role in Nigeria’s economy, with more than 5.9 million active PoS terminals, and over eight million registered devices nationwide. These terminals process billions of naira in transactions daily and have helped expand financial inclusion from 56 per cent in 2020 to more than 64 per cent by 2023.
For millions of Nigerians, particularly in rural and underserved communities, PoS agents serve as the closest alternative to a bank branch, facilitating cash withdrawals, transfers and bill payments.
However, the sector’s rapid expansion has also exposed structural weaknesses, including frequent transaction failures, rising fraud cases and inconsistent operational standards.
From the regulator’s standpoint, the widespread use of multiple terminals has contributed to fragmented accountability, making it difficult to trace responsibility when transactions fail. It has also created loopholes that can be exploited for fraudulent activity, leading to data inconsistencies across platforms.
By requiring agents to operate with a single provider, the Central Bank aims to improve transaction traceability, strengthen anti-money laundering compliance, and reduce suspicious or duplicate transactions. The move reflects a broader regulatory approach that prioritises control and oversight over operational flexibility.
Increased risks for agents and shifting market dynamics
The policy is expected to significantly alter how agents operate. Previously, agents could switch between providers to manage network failures or high transaction costs. With that option removed, any service disruption from a chosen provider could directly affect daily income.
In a market where network reliability remains uneven, the increased dependence on a single platform introduces new operational risks for agents.
The directive is also likely to reshape competition within Nigeria’s fintech landscape. Providers known for strong network performance and reliability, such as OPay and Moniepoint, may benefit as agents gravitate towards platforms with the least downtime.
As the new rules take effect, the balance between regulatory control, operational efficiency, and financial inclusion will remain a key issue for stakeholders across the sector.
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