CBN Slams N5 Million Fine on Illegal Agent Banking Operators

By Diafa Doubra,

The Central Bank of Nigeria (CBN) has imposed a ₦5 million fine on individuals and businesses engaged in illegal agent banking operations across the country. This move comes as part of the apex bank’s renewed efforts to sanitize the rapidly growing financial service sector and curb unlicensed activities undermining the integrity of Nigeria’s payment system.

In a recent circular, the CBN warned that operating Point of Sale (POS) or agency banking services without proper authorization from licensed financial institutions is a criminal offense. The bank stressed that such illegal operators often engage in fraudulent practices, money laundering, and exploitation of customers, posing risks to financial stability and consumer protection.

The CBN further directed commercial banks and licensed financial institutions to closely monitor their agents and ensure compliance with regulatory guidelines. It also advised the public to only transact with authorized agents displaying valid identification from approved financial institutions.

According to the CBN, the new enforcement measure is part of a broader strategy to promote transparency, strengthen digital financial inclusion, and build public trust in the nation’s banking system.