Level of Sale (PoS) operators have raised an alarm that the Central Bank of Nigeria’s (CBN) new coverage on agent banking may drive many small fintech corporations out of enterprise and create monopolies.
The operators, beneath the Affiliation of Cell Cash and {Bank} Brokers in Nigeria (AMMBAN), stated the rule, which mandates PoS brokers to work completely with one {financial} establishment or super-agent, will distort competitors and expose 1000’s of small operators to losses.
They argued that by proscribing brokers from providing a number of companies throughout platforms reminiscent of PalmPay, OPay, and Moniepoint, amongst others, the CBN dangers weakening one among Nigeria’s most vibrant casual enterprise sectors that employs thousands and thousands and drives cashless transactions throughout the nation.
Talking with Nairametrics, the Nationwide President of the Affiliation of Cell Cash and {Bank} Brokers in Nigeria (AMMBAN), Mr. Fasasi Sharafadeen, stated the brand new guidelines, which require brokers to function completely beneath a single {financial} establishment or super-agent, can have far-reaching penalties on the over 1.9 million PoS brokers throughout the nation.
He warned that the coverage may create monopolies available in the market, giving bigger fintechs an unfair benefit over smaller gamers.
“Out of about 200 service suppliers in Nigeria at this time, solely 5 management practically 70% of the agent market. Making operations unique will additional focus energy of their palms,” he stated.
He added that the shared agent mannequin had allowed smaller fintechs to develop and compete, as brokers may serve prospects utilizing a number of platforms.
“That’s the uniqueness of the PoS enterprise and why over 80% of Nigerians are not going to the banks. They’re visiting agent areas as a result of they’re certain that if Opay service is down, PalmPay won’t, if PalmPay is down, Moniepoint won’t,” he stated.
One other prime participant within the PoS ecosystem, Mr. Chigozie Anayo, echoed comparable considerations, saying the brand new guidelines may result in huge divestment and job losses.
“If brokers are compelled to choose one principal, most fintechs will battle to retain their present agent base. Some might even exit the market,” he stated.
Past exclusivity, the coverage additionally introduces stricter branding and operational necessities. Brokers should now function from clearly branded kiosks tied to their chosen {financial} establishment, and are discouraged from working a number of companies on the identical location
“Many brokers mix PoS companies with petty buying and selling to outlive. Telling them to solely do PoS transactions is like asking them to desert their supply of livelihood,” he argued.
He additional questioned the CBN’s method to policymaking, suggesting that it was based mostly on theoretical assumptions moderately than sensible realities.
“A lot of these making these insurance policies have by no means operated within the discipline. You may’t regulate an off-the-cuff sector successfully from an workplace desk,” he stated.
The newest coverage shift follows an earlier directive by the CBN mandating geo-tagging of all PoS terminals within the nation, a transfer many see as a limitation to the operations of PoS companies.
Within the directive launched earlier in September, the CBN mandated using ISO 20022 messaging for funds and required gadgets to help geolocation and geofencing, limiting operational radius to ~10 metres from registered addresses. Terminals that failed the compliance checks scheduled from October 20, 2025, can be deactivated.
In a round (PSP/DIR/CON/CWO/001/049) launched October 6, 2025, and signed by Musa I. Jimoh, Director of Funds System Coverage, the CBN launched recent compliance measures to mirror the rising sophistication of the PoS ecosystem and Nigeria’s push for deeper {financial} inclusion.
Below the brand new framework, all agent banking transactions have to be performed by a devoted account or pockets maintained by the principal {financial} establishment to make sure transparency and higher oversight.
