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The Central Bank of Nigeria (CBN) has issued a stern warning to financial institutions and operators within the agent banking sector, announcing new penalties for those found engaging in unauthorised or non-permissible activities under its recently revised Agent Banking Guidelines.
According to the updated framework, agents caught violating the provisions will face a minimum fine of ₦5 million and an additional ₦100,000 for each day the infraction continues. Offenders will also be required to forfeit any profitsearned from the illegal activity.
The CBN emphasized that operating without a valid Super Agent licence now attracts a ₦10 million fine, plus ₦200,000 per day for as long as the violation persists. Likewise, engaging in non-permissible agent banking activitiesdraws a ₦5 million penalty and ₦100,000 daily until the issue is resolved.
In addition, failure to obtain CBN approval or a ‘No Objection’ where required will result in a ₦2 million fine for both the financial institution (FI) and each responsible director or senior management staff member. Institutions that fail to maintain proper accounting records risk penalties of not less than ₦5 million, while officers found to have wilfully caused such defaults will personally incur fines of at least ₦2 million.
The CBN’s revised guidelines clearly define non-permissible activities, which include:
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Super Agents engaging directly in agent banking operations;
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Agents offering core banking services such as account opening, loan underwriting, investment, or foreign exchange services;
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Delegating approved agent activities to third parties;
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Using non-human or automated machines as agents;
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Or engaging in any other activities deemed impermissible by the CBN.
The apex bank also ruled that individuals or entities with non-performing loans (NPLs) within the 12 months prior to their appointment or renewal as agents will be considered ineligible. Additional disqualifications apply to bankrupt persons, insolvent companies, and individuals whose Bank Verification Numbers (BVNs) are watch-listed.
Explaining the rationale for the update, the CBN stated that the revision became necessary following the rapid growth and increasing complexity of Nigeria’s agent banking ecosystem, driven by technological advancements. The new guidelines consolidate all existing regulations into a single document, offering a more comprehensive framework to manage emerging risks and strengthen the integrity of the financial system.
With the revised rules, the CBN aims to enhance compliance, transparency, and consumer protection in Nigeria’s expanding digital financial services landscape.
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