Point of Sale (PoS) operators in Nigeria have voiced strong concerns over a new Central Bank of Nigeria (CBN) policy on agent banking, warning that it could drive small fintech companies out of business and foster market monopolies. The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) argues that the regulation, which requires PoS agents to partner exclusively with a single financial institution or super-agent, threatens the livelihoods of millions and stifles competition in the sector.
The policy, part of a broader set of guidelines issued by the CBN, is seen as a risk to the vibrant PoS ecosystem, which supports cashless transactions and employs over 1.9 million agents nationwide. AMMBAN’s National President, Fasasi Sharafadeen, told reporters that the exclusivity rule could concentrate market control among a handful of dominant fintechs. “Currently, five major players hold nearly 70% of the agent market. Forcing exclusivity will tilt the scales further, squeezing out smaller firms,” he said.
Sharafadeen emphasized that the shared-agent model has been key to the sector’s growth, allowing agents to offer services across platforms like PalmPay, OPay, and Moniepoint. “Customers rely on agents because they can switch platforms if one is down. Exclusivity will leave agents vulnerable to network failures and limit their flexibility,” he added. He warned that smaller fintechs, which depend on shared agents to compete, may collapse under the new rules, as agents gravitate toward larger players with more reliable infrastructure.
Chigozie Anayo, a prominent figure in the PoS industry, echoed these concerns, predicting significant job losses and divestment. “If agents must choose one principal, many fintechs will lose their agent networks, and some may exit the market entirely,” he said.
Beyond exclusivity, the CBN’s policy imposes strict operational and branding requirements. Agents must now operate from branded kiosks tied to their chosen financial institution and are discouraged from running side businesses at the same location. Sharafadeen called this restriction impractical, noting that many agents rely on additional ventures, such as petty trading, to repay loans and sustain their operations. “Forcing agents to focus solely on PoS transactions is like asking them to give up their survival strategy,” he said.
The policy builds on an earlier CBN directive mandating geo-tagging for all PoS terminals, requiring devices to support geolocation and operate within a 10-meter radius of registered addresses. Non-compliant terminals face deactivation starting April 1, 2026, after the CBN extended the original October 31, 2025, deadline. With 8.3 million registered PoS terminals, including 5.9 million deployed as of March 2025, the scale of compliance is daunting, and fintechs anticipate potential service disruptions.
The CBN’s latest circular, issued on October 6, 2025, and signed by Musa I. Jimoh, Director of Payments System Policy, also requires all agent banking transactions to be processed through dedicated accounts or wallets managed by the principal financial institution. This aims to enhance transparency and oversight in Nigeria’s push for greater financial inclusion.
Critics, however, argue that the CBN’s approach overlooks the realities of the informal sector. “These policies seem crafted from a desk, not the field,” Sharafadeen said. “The PoS business thrives because of its flexibility, and these rules risk undermining that.”
The concerns come amid other economic developments, including a drop in inflation to 18.02% and a weakening naira at N1,473.29/$. As the CBN navigates its regulatory agenda, PoS operators are calling for dialogue to balance oversight with the sector’s growth and inclusivity.
