CBN Imposes N1.2m Daily Transaction Limit on POS Agents

Korede Abdullah in Lagos

The Central Bank of Nigeria (CBN) has restricted Point of Sales (POS) agents to a daily transaction limit of N1.2 million, as part of its efforts to promote a cashless economy.

This move is aimed at enhancing the use of electronic payment channels for agency banking operations.

In a circular released on Tuesday, the CBN stated, “The Bank hereby releases the following policy interventions, which have become necessary to enhance the use of electronic payment channels for agency banking operations.”

The circular also set a cash withdrawal limit per customer at N500,000 per week and a daily maximum transaction cash-out limit of N100,000 per customer.

Additionally, agent terminals must be connected to a Payment Terminal Service Aggregator (PTSA), and agents must use the approved Agent Code 6010 for transactions.

The CBN’s directive is expected to impact the over 3 million deployed POS terminals and 4 million registered POS terminals in Nigeria, which provide financial inclusion for individuals without bank accounts.

However, the move may also affect the operations of mobile agents, who handle most of the daily transaction needs of everyday individuals.

As reported by the International Monetary Fund, (IMF), Nigeria has approximately 1,600 mobile agents per square kilometre, fueled by fintech companies like Opay, Paga, and Moniepoint.

Meanwhile, the Central Bank of Nigeria (CBN) is cracking down on agents, threatening to wield a big stick against any bank that fails to replenish their ATMs, as earlier stated in a December 3 circular.

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