Nigeria: CBN Slaps ₦20 Million Fine on PoS Operators for Unapproved Ownership Transfers

The Central Bank of Nigeria (CBN) has introduced a new set of penalties targeting Point-of-Sale (PoS) and agent banking operators, imposing fines of ₦20 million on any operator that changes its ownership structure without prior regulatory approval.

The sanction, contained in the recently released Guidelines for the Operations of Agent Banking in Nigeria, underscores the apex bank’s drive to strengthen oversight and promote transparency in Nigeria’s fast-growing agent banking sector.

In a circular dated October 6, 2025 (reference number PSP/DIR/CON/CWO/001/049), the CBN stated that any change in ownership, merger, or acquisition involving Super Agents or related entities must first be approved by the Bank. Failure to do so will attract a minimum penalty of ₦20 million, in addition to a ₦500,000 daily fine until compliance is achieved.

The circular, signed by Musa I. Jimoh, Director of the Payments System Policy Department, notes that while the guidelines are effective immediately, provisions relating to agent location and exclusivity will come into force on April 1, 2026. The new framework also consolidates all existing rules into a single regulatory document for better clarity and enforcement.

Broader Sanctions for Non-Compliance

The CBN’s revised guidelines introduce a range of penalties for violations within the agent banking ecosystem:

• Unlicensed Operations: Operating without a valid Super Agent license attracts a fine of ₦10 million, plus ₦200,000 per day for continued non-compliance.

• Non-Permissible Activities: Agents conducting unapproved transactions will be fined ₦5 million and ₦100,000 daily, in addition to forfeiting any profits made.

• Branding and Advertising Breaches: Failure to comply with branding standards will cost ₦2 million, alongside a ₦50,000 daily fine until rectified.

• Lack of Regulatory Approval: Financial institutions that proceed with activities without a required CBN approval or “No Objection” letter will pay ₦2 million per infraction, both at the institutional level and for each responsible director or senior executive.

• Delayed Reporting: Late submission of required reports to the CBN attracts ₦2 million, plus ₦250,000 per day of delay.

• False Information: Providing inaccurate or misleading information to the regulator will result in a ₦5 million fine, and may lead to the suspension or removal of responsible directors.

Accounting, AML, and Branding Compliance

The guidelines also strengthen enforcement around accounting, anti-money laundering, and branding compliance:

• Poor Record-Keeping: Institutions that fail to maintain proper accounting records will pay ₦5 million, while deliberate breaches will attract an additional ₦2 million fine for responsible officers.

• Non-Response to CBN Queries: Institutions that fail to respond to official requests within the required timeframe face ₦5 million fines, plus ₦100,000 daily until compliance.

• Unapproved Identity Changes: Altering a company’s name, logo, or corporate identity without CBN approval attracts a ₦5 million fine, mandatory reversion to the approved name, and a ₦100,000 daily penalty.

• AML/CFT Violations: Breaches of Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Countering Proliferation Financing (CPF) laws will draw a ₦10 million fine for the institution and ₦2 million per board member involved, with additional sanctions possible under the 2018 AML/CFT/CPF framework.

Strengthening Fraud Prevention and Equipment Security

The CBN also directed financial institutions to collaborate with law enforcement agencies in investigating and prosecuting fraud cases. Any agent implicated in fraud must be immediately suspended by the principal and blacklisted if found guilty.

In addition, principals and Super Agents that fail to implement security controls, such as geo-locking of agent banking devices, will face a ₦5 million fine, with a ₦300,000 daily penalty until compliance.

Reinforcing Accountability and Consumer Protection

The revised sanctions mark a significant escalation in the CBN’s enforcement strategy, aimed at tightening regulatory control, curbing misconduct, and safeguarding consumers in the agent banking and fintech ecosystem.

By enforcing stricter compliance, the Central Bank seeks to ensure that Nigeria’s agent banking network — a key driver of financial inclusion — operates under greater accountability, transparency, and operational discipline.