CBN slams N1.2m daily limit on POS agents

The Central Bank of Nigeria (CBN) has set a daily transaction cap of N1.2 million for Point of Sales (PoS) agents. This information was shared in a circular titled ‘Circular on Cash-Out Limits for Agent Banking Transactions,’ issued on Tuesday. The CBN stated that this measure supports its goal of promoting a cashless economy. The circular, signed by Oladimeji Yisa Taiwo for the Director of the Payments System Management Department, outlined necessary policy changes to improve the use of electronic payment systems in agency banking.

As reported by the Nigerian Financial Services Report, agency banking, which includes PoS and mobile money, is crucial for individuals without bank accounts to access funds from outside their local areas, playing a significant role in financial inclusion. By July 2024, Nigeria had 3.05 million PoS devices deployed and 4.06 million registered PoS terminals, according to the Nigeria Interbank Settlement System Plc.

Additionally, the new policy sets a cash withdrawal limit of N500,000 per customer per week, with a daily maximum cash-out limit of N100,000 per customer at agent banking terminals. An agent’s total cash-out limit for the day is capped at N1.2 million.

Furthermore, all agent terminals must connect to a Payment Terminal Service Aggregator (PTSA). The CBN emphasized that all daily transactions, including withdrawals and transaction limits, must be reported electronically to NIBSS. The report template will be provided to the principals.

The CBN also clarified that agent banking services should be distinct from merchant activities, and agents are required to use the approved Agent Code 6010 for their operations.

A recent report by Bloomberg highlighted the role of agents in addressing the shortfall created by Automated Teller Machines. The nation boasts over two million mobile agents who cater to the daily transaction requirements of the general populace.

The International Monetary Fund indicates that there are approximately 1,600 agents for every square kilometre, a figure propelled by the expansion of fintech firms such as Opay, Paga, and Moniepoint. Nevertheless, the Central Bank of Nigeria has been attempting to regulate these agents, issuing a circular on December 3 that warned banks of potential sanctions if they fail to adequately replenish their ATMs.