CBN Bans Loan Defaulters and Blacklisted BVNs from Operating as PoS Agents in Nigeria

The Central Bank of Nigeria (CBN) has introduced stricter regulations that now bar loan defaulters, blacklisted Bank Verification Numbers (BVNs), and individuals with questionable financial histories from becoming Point of Sale (PoS) agents across the country.

The directive, contained in the revised Guidelines for the Operations of Agent Banking in Nigeria released on October 6, 2025, marks a new phase in the CBN’s effort to strengthen financial integrity and curb fraud in the fast-growing PoS sector.

According to the apex bank, the move aims to sanitize the agent banking ecosystem, reduce the risks associated with weak oversight, and enhance consumer protection.

“Individuals with unresolved debts, watch-listed BVNs, or a record of financial misconduct will no longer be eligible to serve as PoS agents,” the circular stated.

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Non-Performing Loans Now a Disqualification

Under the new framework, anyone with a non-performing loan with any Nigerian financial institution within the last 12 months automatically loses eligibility to register or operate as a PoS agent.

To enforce this, the CBN said financial institutions will rely on licensed credit bureaus to verify credit histories, ensuring that only financially responsible individuals can participate in agent banking.

Similarly, anyone whose BVN has been flagged or blacklisted for suspicious or fraudulent activities is now barred from the industry. Persons convicted of fraud, financial dishonesty, or related offences are also permanently disqualified.

Bankruptcy and Insolvency Also Disqualify Applicants

In addition to loan defaults, the new guidelines automatically exclude bankrupt individuals or insolvent companies from operating as PoS agents. The CBN emphasized that agent banking is a sensitive financial service requiring trustworthy and financially sound operators.

“Only stable, credible, and financially disciplined individuals should handle customer funds or act as representatives of banks,” the circular added.

Eligibility Requirements for New PoS Agents

To qualify as a PoS or banking agent under the revised CBN rules, applicants must meet certain minimum standards:

• Be at least 18 years old and of sound mind.
• Provide verifiable personal and business information.
• Have a registered business address and valid identification.
• Demonstrate the capacity to perform approved financial services such as deposits, withdrawals, fund transfers, airtime top-up, and bill payments.
• Obtain necessary authorisations and comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.

The guidelines also mandate that banks, super agents, and licensed payment service providers conduct thorough due diligence before approving or onboarding any agent. This includes background checks on financial history, criminal records, and potential conflicts of interest.

Why the CBN is Tightening Agent Banking Rules

Agent banking has become one of Nigeria’s strongest drivers of financial inclusion, especially in rural and underserved communities. As of March 2025, Nigeria had over 8.3 million registered PoS terminals, with more than 5.9 million actively deployed.

However, the rapid expansion of the industry has also led to rising cases of fraud, data breaches, and unauthorized operations. Several agents have been linked to financial scams, overcharging, and non-compliance with cashless policy limits.

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By introducing these restrictions, the CBN aims to:

• Prevent financially unstable individuals from handling customer funds.
• Improve transparency and accountability in the PoS sector.
• Reduce fraud and regulatory breaches.
• Boost public trust in the cashless economy.

Increased Compliance Costs for PoS Operators

While the policy enhances sector integrity, industry insiders say it could increase compliance costs for operators. Banks and payment service providers must now integrate credit checks, BVN verifications, and legal clearances into their onboarding processes.

Nevertheless, the CBN believes the long-term benefits outweigh the costs, as stronger vetting procedures will create a safer and more reliable financial environment for consumers and businesses.

Broader Reforms Underway in the PoS Industry

The latest CBN directive is part of a series of reforms aimed at cleaning up the agent banking sector. Earlier in August 2025, the apex bank ordered PoS operators to geo-tag all their terminals and comply with the global ISO 20022 messaging standard — a system designed to improve interoperability and transaction traceability.

Initially, operators were given 60 days to comply, but the CBN has now extended the deadline to April 1, 2026. Despite the extension, the regulator warned that non-compliant PoS devices risk being shut down, and defaulters may face heavy fines or loss of operating licenses.

“This extension is not a relaxation of rules but a window for institutions to align their systems and processes,” a senior CBN official said.

Protecting the Future of Digital Payments in Nigeria

The CBN’s latest policy reinforces its commitment to building a secure and transparent financial system that supports innovation while safeguarding the interests of customers.

Analysts believe the move will ultimately strengthen confidence in Nigeria’s digital payment landscape, ensuring that PoS agents — who are often the face of banking in remote areas — meet the highest standards of integrity and accountability.

With the PoS industry handling billions of naira in transactions every month, the central bank’s renewed oversight is expected to reduce fraud risks, enhance compliance, and promote a more stable financial ecosystem.

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