The Central Bank of Nigeria (CBN) has barred individuals with unresolved debts, watch-listed Bank Verification Numbers (BVNs), or a history of financial misconduct from operating as Point of Sale (PoS) agents.
This is contained in the revised Guidelines for the Operations of Agent Banking in Nigeria, made public on Monday.
The guidelines aim to tighten due diligence standards in an industry that has become critical to financial inclusion but is also plagued by fraud, over-concentration of risk, and weak oversight.
Under the new rules, any person or entity with a non-performing loan with any financial institution in the last 12 months is ineligible to be appointed as an agent.
The CBN said credit information would be verified through licensed credit bureaus, closing loopholes that have allowed individuals with bad debts to resurface as PoS operators.
The CBN further said individuals whose BVNs have been watch-listed, as well as anyone who has been blacklisted for financial misconduct is disqualified.
It further said agents convicted of felonies, fraud, dishonesty, or related offences will also not be permitted to operate.
In addition, persons declared bankrupt or companies that have filed for insolvency are automatically barred from agent banking, reinforcing the regulator’s stance that only financially stable and trustworthy actors can hold such positions.
For those seeking approval, the guidelines stipulate that prospective agents must demonstrate the ability to carry out permissible activities such as deposits, withdrawals, and bill payments and must also provide all mandatory information required under CBN regulations, secure authorisations from relevant authorities where necessary, and, in the case of individuals, be at least 18 years old and of sound mind.
The central bank also mandated that principals — banks, super agents, and licensed payment service providers — conduct comprehensive due diligence before appointing agents. This includes verifying credit history, criminal records, sources of funds, business addresses, and pre-existing relationships that could pose risks.
