CBN slams N20m fine on super agents over unapproved ownership changes

The Central Bank of Nigeria (CBN) has tightened regulatory control over the country’s fast-growing agent banking sector, imposing steep penalties on super agents, financial institutions, and other licensed entities that alter their ownership structure without prior approval from the apex bank.

In its Guidelines for the Operations of Agent Banking in Nigeria, released in October 2025, the regulator prescribed a penalty of ₦20 million for any super agent or institution found guilty of changing ownership, entering into an acquisition, or executing a merger without obtaining its authorisation.

The rules further stipulate an additional ₦500,000 daily fine for each day such default continues.

Broader sanctions framework

Beyond ownership changes, the new framework sets out a wide range of sanctions designed to enforce discipline in the sector.

Operating without a licence: attracts a minimum fine of ₦10 million.

Failure to secure CBN “No Objection” before key activities: attracts a fine of ₦2 million each for the institution and its responsible directors.

Engaging in non-permissible activities: incurs fines starting from ₦5 million, daily penalties of ₦100,000, and possible forfeiture of any profits derived.

Late submission of regulatory returns: will also draw penalties, though the CBN said amounts will be determined in line with the severity of default.

Implementation timeline

While the guidelines take immediate effect, some provisions, particularly those concerning agent location and exclusivity rules, will only become enforceable from April 1, 2026.

The apex bank explained that the staggered enforcement would give institutions and their agents time to align business operations with regulatory requirements.

Ensuring compliance in a growing sector

The CBN noted that the measures are aimed at strengthening transparency, accountability, and consumer protection within the agent banking ecosystem, which has expanded rapidly in recent years as a critical driver of financial inclusion.

“Agent banking remains central to broadening access to financial services across the country. These guidelines are designed to safeguard the integrity of the system, protect customers, and ensure operators play by the rules,” a senior regulatory official said.

Industry analysts say the tougher stance reflects the CBN’s increasing concern over rising compliance breaches and ownership manipulation among players in the space, especially as agent banking becomes a backbone of payments and financial services in rural and semi-urban Nigeria.