The Central Bank of Nigeria (CBN) has unveiled new guidelines for the operation of agent banking, aimed at improving access to finance for small and medium-sized enterprises (SMEs), micro-businesses, and individuals in underserved communities.
The updated regulation, which takes effect from April 1, 2026, sets out minimum standards for agent-banking operations and seeks to enhance service quality, consumer protection, and responsible market conduct.
In a circular dated October 6, 2025, signed by the CBN's Director of Payments System Policy Department, Musa I. Jimoh, the apex bank said the new framework replaces all previous guidelines on agent banking and agent relationships.
The CBN noted that the revised rules were designed to strengthen financial inclusion, a key driver of SME growth and job creation. By expanding the network of banking agents, the new policy is expected to make financial services more accessible to small business owners in rural and semi-urban areas who often face difficulties accessing traditional banks.
Under the new framework, financial institutions must ensure that each agent's daily cumulative cash-out limit does not exceed ₦1.2 million, although the bank may adjust this threshold as market conditions evolve. Devices deployed to agents will also be geo-fenced to prevent fraudulent activities outside approved locations.
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The CBN emphasized that all stakeholders — including Deposit Money Banks, Microfinance Banks, and Payment Service Providers — must comply with Know Your Customer (KYC) and anti-money laundering regulations to protect consumers and promote trust in the system.
Agent banking, which allows third-party operators to offer banking services on behalf of licensed institutions, has been a key tool in Nigeria's financial-inclusion drive. Since its introduction in 2013, the initiative has helped bridge the gap between formal banking institutions and millions of unbanked Nigerians.
According to the CBN, the review was necessary to consolidate previous regulations and align them with technological advancements shaping the financial-services landscape. The goal, it said, is to create a more inclusive financial ecosystem that empowers SMEs, market traders, farmers, and informal-sector entrepreneurs.
"The new guidelines will strengthen the enabling environment for offering safe and affordable financial services to underbanked and remote communities," the bank stated.
With improved agent-banking standards, small businesses are expected to benefit from easier access to deposits, payments, transfers, and micro-credit services — vital tools for expanding operations, improving cash flow, and driving local economic growth.
