The Central Bank of Nigeria (CBN) has restricted Point of Sales (PoS) agents to a daily transaction limit of N1.2 million.

The apex bank, in a ‘Circular on Cash-Out Limits for Agent Banking Transactions’ issued on Tuesday, said the decision was in line with its ongoing efforts to advance a cashless economy.

“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 CBN said in the circular signed by Oladimeji Yisa Taiwo for the Director, Payments System Management Department.

Part of this policy intervention also set a cash withdrawal limit per customer (regardless of channel) at N500,000 per week. It also set all agent banking terminals at a daily maximum transaction cash-out limit of N100,000 per customer and an agent’s daily cumulative cash-out limit at N1.2 million.

The CBN mandated all agent terminals to be connected to a Payment Terminal Service Aggregator (PTSA).

“Ensure that all daily transactions per agent, including withdrawals, limits of transactions, and balances in the float accounts of each agent, are sent electronically to NIBSS as a report to the CBN. The template of this report will be sent to principals,” the apex bank said.

It directed that agent banking services be demarcated from merchant activities and agents apply the approved Agent Code 6010 for agent banking activities.

Nigeria has about 1,600 agents within every square kilometre, driven by the growth of fintech companies like Opay, Paga, and Moniepoint, according to the International Monetary Fund,