The Central Bank of Nigeria (CBN) has unveiled new policy directives aimed at enhancing Nigeria’s cashless economy by regulating cash-out transactions conducted by Point of Sale (POS) agents. Effective immediately, the policy sets clear limits on daily and weekly withdrawals to streamline agency banking operations, reduce fraud, and promote electronic payment adoption.
Signed by Oladimeji Yisa Taiwo for the Director of the Payments System Management Department, the directive establishes a ₦100,000 daily cash-out limit per customer. Additionally, each POS agent is restricted to a ₦1,200,000 cumulative daily limit for all cash-out transactions. Weekly cash withdrawals for individual customers are capped at ₦500,000 across all banking channels.
These measures reflect the CBN’s ongoing drive to create a more secure, transparent, and efficient financial ecosystem. With POS services becoming a cornerstone of financial access for millions of Nigerians, the central bank aims to address operational inconsistencies and mitigate fraudulent practices that have plagued the sector.
Key Directives for POS Agents
To ensure compliance, the circular outlines critical steps that agent banking principals and operators must follow:
- Issuers shall set a cash withdrawal limit (cash-out) per customer (regardless of channel) to ₦500,000.00 per week.
- Ensure that all agent banking terminals are set to a daily maximum transaction cash-out limit of ₦100,000.00 per customer.
- Ensure that each agent’s daily cumulative cash-out limit shall not exceed ₦1,200,000.00.
- Ensure that agent banking services are clearly demarcated from merchant activities and that agents apply the approved Agent Code 6010 for agent banking activities.
- 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.
The apex bank emphasised that principals would be wholly responsible and liable for all actions and ommissions of their agents as it relates to agent banking services or matters connected therewith.
The new directive by the Central Bank of Nigeria (CBN) limits daily and weekly cash-out transactions for customers and POS agents, aiming to enhance the cashless economy and reduce fraud. This policy will streamline agency banking operations, promote electronic payments, and hold principals accountable for the actions of their agents.
