PoS operators risk N20m fine for unapproved ownership changes
By Seun Ibiyemi
Operators of Point-of-Sale (PoS) machines risk getting a minimum fine of ₦20 million if they alter the ownership structure of their machines without securing prior approval from the apex bank.
This was disclosed in the revised Guidelines for the Operations of Agent Banking in Nigeria, issued on October 6, 2025 by the Central Bank of Nigeria (CBN).
According to the revised Guidelines for the Operations of Agent Banking in Nigeria, the new rules are designed to strengthen oversight and ensure compliance within Nigeria’s fast-growing agent banking sector.
The circular, referenced PSP/DIR/CON/CWO/001/049, was signed by Musa I. Jimoh, Director of the Payments System Policy Department.
Under the guidelines, violators who change ownership, merge, or undergo acquisitions without the CBN’s consent will face a minimum ₦20 million fine, with an additional ₦500,000 daily penalty until the breach is rectified.
While the new framework takes immediate effect, the CBN stated that certain provisions—especially those relating to agent location and exclusivity—will become enforceable from April 1, 2026.
The guidelines also stipulate a comprehensive sanction regime covering multiple areas of non-compliance. Entities operating without a valid Super Agent licence will face a ₦10 million fine and ₦200,000 for each day of violation, while those engaging in non-permissible activities risk penalties starting from ₦5 million and forfeiture of any illegal profits.
Branding or advertising in contravention of approved standards will attract a minimum fine of ₦2 million plus ₦50,000 daily penalties.
Institutions that fail to obtain CBN approval or a “No Objection” letter when required will pay ₦2 million each—both for the institution and every responsible senior officer.
Late submission of regulatory returns will cost a ₦2 million fine plus ₦250,000 for each day of delay, while providing false information to the apex bank attracts ₦5 million and possible suspension or removal of involved directors.
Financial institutions failing to maintain proper accounting records risk a ₦5 million fine, with an additional ₦2 million for any officer found to have wilfully breached the rule.
The new rules also target non-compliance in responding to CBN information requests, unapproved corporate rebranding, and breaches of anti-money laundering (AML), counter-terrorism financing (CFT), and proliferation financing (CPF) laws.
Institutions that violate AML/CFT/CPF laws face fines of ₦10 million, while each culpable board member will pay ₦2 million.
The guidelines further mandate banks and Super Agents to assist law enforcement agencies in investigating fraud cases involving agents. Any agent found complicit must be suspended immediately and blacklisted if convicted.
In addition, failure to implement control mechanisms such as geo-locking of PoS equipment will attract fines of ₦5 million and ₦300,000 per day of non-compliance.
According to the CBN, the revised sanctions are part of its drive to enforce accountability, operational discipline, and financial integrity in the expanding agent banking network, which plays a crucial role in promoting financial inclusion across Nigeria.