PoS Operators Raise Alarm: CBN’s New Policy Threatens Small Fintechs, Promotes Monopoly

Point of Sale (PoS) operators in Nigeria have expressed deep concern over the Central Bank of Nigeria’s (CBN) newly released agent banking regulations, warning that the policy could push many small fintech companies out of business and entrench monopolies in the digital payment ecosystem.

Under the new directive, PoS agents are required to operate exclusively under a single financial institution or super-agent, effectively prohibiting them from using multiple fintech platforms such as PalmPay, OPay, and Moniepoint.

The operators, under the umbrella of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), say this exclusivity clause threatens competition, financial inclusion, and job security for millions of Nigerians who depend on the PoS sector for livelihood.

Monopoly Fears and Market Concentration

Speaking to journalists, AMMBAN National President, Mr. Fasasi Sharafadeen, warned that the new regulation could create monopolies, giving dominant fintech players an unfair edge over smaller competitors.

“Out of about 200 licensed service providers, only five currently control nearly 70% of the agent market. Enforcing exclusivity will further consolidate their power,” Sharafadeen said.

He noted that the shared agent model had been instrumental in driving the growth of Nigeria’s cashless economy, allowing agents to serve customers across multiple platforms and ensuring transaction continuity when one service fails.

“That flexibility is what makes the PoS business thrive. If Opay is down, PalmPay works. If PalmPay is down, Moniepoint is available. This competition benefits both agents and customers,” he added.

According to him, many small fintechs rely on shared agent networks to stay afloat, and enforcing exclusivity would cripple them. “Thousands of agents would drop terminals from smaller fintechs and stick to the big players. That’s not healthy for the market,” he warned.

Operational Restrictions May Shrink PoS Business

Beyond exclusivity, the new CBN policy imposes stricter branding and operational rules, including a requirement for agents to operate from clearly branded kiosks linked to their chosen institution and to refrain from running multiple businesses at the same location.

Sharafadeen described this as impractical, noting that most PoS agents combine petty trading with financial services to sustain daily loan repayments.

“Telling them to only do PoS transactions is like asking them to abandon their source of survival,” he said, criticizing what he called a theoretical approach to regulating an informal sector

From Geo-Tagging to Business Restrictions

The new policy follows a series of tightening regulations by the CBN, including the recent geo-tagging directive that limits the operation of PoS terminals to within a 10-metre radius of their registered business addresses.

In a circular (PSP/DIR/CON/CWO/001/049) issued on October 6, 2025, and signed by Musa I. Jimoh, Director of Payment Systems Policy, the CBN announced that all agent banking transactions must be conducted through dedicated accounts or wallets tied to principal institutions for better oversight.

Other measures include:

• Daily customer transaction limit of ₦100,000.

• Geo-fencing of agent devices to prevent unauthorized mobility.

• Blacklisting of agents involved in fraud or regulatory violations.

The CBN said full implementation of the new agent location and exclusivity rules would commence on April 1, 2026, following the extension of the earlier geo-tagging compliance deadline.

Industry Reaction and Outlook

Analysts say the CBN’s move, though aimed at strengthening oversight and transparency, may stifle innovation and financial inclusion if not carefully implemented.

With over 8.3 million registered PoS terminals and 5.9 million deployed nationwide as of March 2025, the PoS sector remains a vital part of Nigeria’s cashless policy and financial inclusion agenda.

Stakeholders are urging the apex bank to reconsider the exclusivity clause and engage more with operators to strike a balance between regulation, competition, and inclusion.