The Fiscal Discipline and Development Advocacy Centre (FIDAC) has condemned the new regulatory guidelines issued by the Central Bank of Nigeria (CBN) for Point-of-Sale (POS) operations, describing them as “insensitive, economically damaging, and a threat to financial inclusion.”
The CBN had, on 6 October 2025, released a revised framework for POS agents across the country, which will take effect from 1 April 2026.
According to a statement made available to Stallion Times on Friday by the Executive Director of FIDAC, Abdussalam Muhammad Kani, the policy introduces stricter operational requirements for POS agents, including geo-tagging of terminals, limited service locations, stricter registration processes, and heavy sanctions for violations.
Data from the Nigeria Interbank Settlement System (NIBSS), Nigeria had over 8.36 million registered POS terminals as of March 2025, with 5.9 million actively in use.
The POS industry has played a significant role in improving access to financial services, especially in rural and underserved communities.
With only 2,723 bank branches nationwide as of August 2025, POS agents have helped bridge the gap, particularly in Northern Nigeria, where financial exclusion remains high.
The 2023 EFInA Access to Finance Survey showed that 26 per cent of Nigerians are still financially excluded, a gap that POS operations have helped reduce by creating easier access to banking services.
The sector also supports more than 1.5 million young Nigerians who rely on the POS business for income.
However, the CBN’s new guidelines have sparked criticism. The rules mandate geo-tagging of all terminals and restrict agents to a 10-metre radius from their registered business locations.
Agents who fail to comply within 60 days risk having their terminals deactivated.
The guidelines also prohibit agents from working with multiple financial institutions, forcing them into exclusive partnerships with a single bank or fintech firm.
In addition, the CBN now requires POS operators to provide evidence of business registration, tax compliance, and proof of adequate capital.
They must also submit monthly transaction reports through their partner banks and undergo mandatory biannual training on Know Your Customer (KYC) procedures, fraud prevention, and customer service.
Other provisions include a N100,000 daily withdrawal limit per customer, a weekly limit of N500,000, and a N1.2 million cash-out limit per agent per day.
The policy also bars persons under 18 and those with outstanding debts, blacklisted Bank Verification Numbers (BVNs), or criminal records from operating POS businesses.
Violations attract heavy fines, including N5 million for geo-tagging breaches and N2 million for unauthorized transfers of business ownership.
FIDAC warned that the policy could push millions of micro-entrepreneurs out of business and worsen unemployment.
It argued that the POS model was originally designed as a low-entry business to support financial inclusion and should not be subjected to rigid corporate requirements such as incorporation and tax certification.
“The CBN is trying to fix a non-existent problem with excessive regulation.
“Fraud prevention and financial crime monitoring are already the responsibility of agencies like the EFCC, ICPC, and NFIU.
“Duplicating these roles only creates confusion and stifles innovation,” FIDAC said in the statement
The organization criticized the CBN for failing to consult stakeholders before announcing the new regulations.
It urged POS associations across the country to take immediate legal action and petition the National Assembly to suspend implementation of the guidelines.
“Good governance demands stakeholder engagement and empathy, especially when policies affect millions of livelihoods.
“Nigeria’s economic recovery depends on supporting small businesses, not suffocating them with punitive regulations,” FIDAC stated.
FIDAC also called on the CBN to suspend the implementation of the guidelines and work with relevant agencies to create a balanced and inclusive framework that protects both financial stability and small-scale entrepreneurs.
FIDAC is a non-governmental, not-for-profit organization dedicated to promoting fiscal discipline and development in Nigeria by inspiring a community of active citizens to demand fiscal transparency, accountability, institutional reforms, and efficient service delivery.
