The Central Bank of Nigeria (CBN) has issued a stern warning to financial agents and institutions, declaring that any operator found engaging in non-permissible or unlicensed agent banking activities will face severe sanctions.
Under the newly revised Agent Banking Guidelines, offenders will pay a minimum fine of N5 million, plus N100,000 for each day the violation continues. In addition, profits earned from such illegal activities will be confiscated.
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According to the CBN, “Operating without a valid Super Agent licence attracts a fine of not less than N10 million and N200,000 for each day the default persists. Engaging in non-permissible agent banking activities attracts a fine of not less than N5 million and N100,000 daily until corrected. Furthermore, all profits from such operations shall be forfeited.”
Additional Penalties for Non-Compliance
The revised framework also stipulates heavy penalties for financial institutions that fail to comply with approval requirements. Any institution operating without the CBN’s approval or ‘No Objection’ will be fined N2 million, while each director or senior executive responsible for the breach will face additional penalties.
Failure to maintain transparent accounting records will attract a minimum fine of N5 million, and any officer found to have deliberately caused such default will be personally liable for at least N2 million.
Non-Permissible Agent Banking Activities
The CBN listed a series of activities considered illegal under the new rules. These include:
- Super Agents directly performing agent banking services.
- Agents offering core banking operations such as account opening, loan processing, investments, or forex transactions.
- Delegating authorized agent functions to other entities or individuals.
- Using automated or non-human machines as banking agents.
- Any other activity the CBN deems non-permissible.
Disqualification Criteria for Agent Bankers
Individuals or entities with non-performing loans (NPLs) within the 12 months preceding their appointment or renewal are ineligible to operate as agent bankers. Others barred include persons declared bankrupt, companies under insolvency, or individuals with BVNs on the watchlist.
Why the Guidelines Were Revised
Explaining the reason behind the update, the CBN noted that the agent banking sector has rapidly evolved, driven by technological innovation and increasing financial inclusion. The revised document, it said, consolidates various policies into one comprehensive guide that addresses current and emerging challenges in the ecosystem.
The apex bank emphasized that the move aims to strengthen oversight, ensure consumer protection, and maintain the integrity of Nigeria’s growing digital financial services landscape.
