Nigeria's CBN Cracks Down: Single POS Loyalty Rule Targets Fintech Overreach

In a sweeping move to tidy up the booming world of mobile money, Nigeria's Central Bank has slapped a firm new policy on point-of-sale agents, mandating they stick to just one main provider starting next spring. No more juggling terminals from rivals like Moniepoint, OPay, or PalmPay; from April onward, every agent picks a single bank, mobile money outfit, microfinance player, or payment service bank to represent. The guidelines, unveiled last weekend, give folks a six-month window to sort things out, marking the biggest shake-up in agent banking rules since the whole setup kicked off over a decade ago.

These fresh directives zero in on cleaning house in a sector that's exploded into a lifeline for cash-strapped everyday folks. The idea is straightforward: tighten oversight, boost financial access for the unbanked, foster fair play among players, and lift the overall game for customers. Agents who once hopped between platforms to cover more ground now have to commit to one principal or a licensed super-agent, while those big providers must roll out public lists of their on-the-ground teams, complete with spots on the map. That setup will help police things like the hard cap on daily cash pulls at about $816 and rules tying services to specific locales.

On top of that, the rules draw a clear line between agent gigs and straight-up merchant hustles, task principals with keeping a sharp eye on agents' personal IDs to flag any funny business outside approved limits, and demand spot-on records of every deal. Suspicious moves or glitches? Report them fast. The central bank holds the right to pull files directly from agents anytime, no middleman needed. All flows of money must run through a locked-in agent wallet or account with the principal, and stepping out of line could mean getting booted, blacklisted, or hauled into court.

This comes against a backdrop of wild growth in Nigeria's agent scene, turbocharged by homegrown fintech stars. By early this year, the country had clocked over 8.3 million registered POS devices, with nearly 6 million humming along in real time. Come the first quarter, those machines funneled a jaw-dropping $7.15 billion in deals, up more than triple from the year before. It's no wonder: with billions in cash still floating outside formal banks and prices climbing at over 20 percent, these agents have become the go-to bridge for quick withdrawals and basic banking in cities and villages alike. Yet that surge has sparked headaches, from unchecked money flows to gaps in accountability, prompting the bank to layer on these controls alongside tech upgrades and location-based safeguards.

As the central bank laid out in its official word, the push is all about "setting baseline rules for agent banking oversight and day-to-day runs, ramping up this channel to push financial services deeper into communities, and nudging everyone toward solid practices that sharpen service delivery."

The ripple effects could redraw the map for how millions tap into cash and credit each day. Industry watchers see it forcing some shakeouts, with smaller outfits possibly merging or bowing out, and agents scrambling to ditch extra gear during the handover. On the flip side, customers stand to gain from more reliable setups and stricter guardrails on limits, though expect some bumps as the switch flips. By reining in loose cash circulation, the policy tackles bigger economic woes head-on, all while keeping the door open for broader inclusion.

As the countdown to compliance ticks down, this feels like the central bank's latest flex in a string of reforms aimed at steadying a sector that's equal parts opportunity and tightrope. For fintechs and agents alike, it's a call to adapt fast, but if it lands right, it could turn a patchwork network into a powerhouse of trust and efficiency.