(DDM) – The Central Bank of Nigeria (CBN) has introduced strict sanctions for financial institutions and individuals violating its revised Agent Banking Guidelines, setting a minimum fine of ₦5 million for any agent engaged in non-permissible activities, alongside a daily penalty of ₦100,000 for continued default.
Diaspora Digital Media (DDM) gathered that the apex bank made this announcement as part of efforts to tighten oversight and strengthen compliance within Nigeria’s rapidly expanding agent banking sector, which has become a key driver of financial inclusion across rural and semi-urban communities.
According to the new framework, operating without a valid Super Agent licence will attract a fine of ₦10 million, with an additional ₦200,000 daily penalty for each day the violation continues.
The guidelines further stipulate that engaging in prohibited agent banking activities, such as loan underwriting, investment operations, foreign exchange trading, or delegating services to third parties, would not only attract monetary penalties but also result in the forfeiture of any profits made from such transactions.
In addition, any financial institution that fails to obtain the CBN’s approval or a formal “No Objection” before undertaking specified activities will face a ₦2 million fine, including separate penalties for each director or senior management official found culpable.
The circular also mandates accurate record-keeping. Failure to maintain proper accounting documentation will incur a fine of ₦5 million for the financial institution, while any responsible officer may personally face an additional ₦2 million fine.
Under the new rules, the CBN outlined several non-permissible activities, which include:
Super agents carrying out direct agent banking services.
Agents offering full banking operations like account opening or loan issuance.
Delegating agent responsibilities to another individual or entity.
Using automated or non-human systems to act as agents.
Any activity that the CBN classifies as contrary to agent banking regulations.
Furthermore, individuals or entities with non-performing loans (NPLs) within 12 months before appointment as agents are ineligible to participate.
The same restriction applies to bankrupt individuals, companies under insolvency, or anyone whose Bank Verification Number (BVN) appears on regulatory watchlists.
The CBN explained that the revision of the Agent Banking Guidelines became necessary due to the sector’s rapid technological expansion and growing complexity.
It said the new rules consolidate multiple previous directives into a single, comprehensive document designed to improve operational integrity, enhance consumer protection, and promote systemic stability.
Agent banking, which allows third-party agents to offer basic financial services on behalf of licensed banks or mobile money operators, has seen explosive growth in recent years, helping bridge Nigeria’s financial access gap, especially in areas lacking bank branches.
However, regulators have warned that poor oversight, fraud, and unlicensed operations threaten the credibility of the system.
By introducing these new penalties, the CBN aims to curb malpractice, enhance transparency, and restore public confidence in agent-led financial services.
The apex bank reaffirmed its commitment to ensuring compliance and warned that it would not hesitate to suspend or blacklist defaulting agents, institutions, or super agents found violating operational standards.
Analysts see the development as part of a wider regulatory tightening under the CBN’s renewed focus on financial discipline and digital payment security, signalling that the era of weak enforcement in agent banking is over.
