The Central Bank of Nigeria (CBN) has set new cash-out limits for agent banking transactions, part of efforts by the apex bank to promote a cashless economy and curb fraud within the sector.
Under the new policy, which takes effect immediately, cash withdrawals per customer are capped at ₦500,000 weekly across all channels. Additionally, a daily cash-out limit of ₦100,000 per customer is now mandatory. Agent banking operators are also required to ensure that their daily cumulative cash-out transactions do not exceed ₦1.2 million.
According to the CBN, these interventions have “become necessary to enhance the use of electronic payment channels for agency banking operations,” and it also aims to “to address identified challenges, combat fraud and establish uniform operational standards across the industry.”
The apex banks says that all deposit money banks, microfinance banks, mobile money operators, and super-agents are required to comply with these directives.
Agent banking, a key component of Nigeria’s financial inclusion drive, allows banks and financial institutions to deliver services through non-bank outlets like Opay and Moniepoint. The model has grown significantly, particularly in underserved rural areas, offering services such as deposits, withdrawals, and bill payments.
The CBN’s new policy aims to standardise operations and improve accountability in agent banking, a sector that has seen rapid growth but has also faced challenges, including fraud, according to the apex bank.
The CBN outlined further instructions to ensure compliance and maintain uniformity across the agent banking sector.
“Ensure that agent banking services are clearly demarcated from merchant activities and that agents apply the approved Agent Code 6010 for agent banking activities,” the apex bank rules.
Ensure that agency banking activities are consummated exclusively through agent float accounts maintained with the principals
Monitor accounts associated with the agents’ BVN(S) with a view to identifying agent banking activities which may be conducted outside the designated float account(s)
Ensure that all agent terminals are connected to a PTSA
Ensure that all daily transactions per agent, including withdrawals, limits of transactions and balances in the float accounts of each agent, are sent electronically to NIBSS as a report to the CBN. The template of this report will be sent to principals,” says the CBN in a circular.
“Principals shall be wholly responsible and liable for all actions and omissions of their agents as it relates to agent banking services or matters connected therewith,” Oladimeji Yisa Taiwo, director of the Payments System Management Department at the CBN, states in the circular.
“The CBN will conduct oversight of the afore-mentioned actions(including impromptu back-end configuration checks) to ensure that all principals and their agents comply. Any breach of the directives contained in this Circular shall attract appropriate penalties including monetary and/or administrative sanctions,” according to the CBN.
These measures are part of broader initiatives to reduce the reliance on cash in Nigeria, which has one of the highest cash usage rates in sub-Saharan Africa. The CBN has introduced several policies in recent years to encourage electronic transactions, such as the eNaira, its digital currency launched in October 2021.
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