By David Akinmola
Point-of-Sale (PoS) operators across Nigeria have raised concerns over the Central Bank of Nigeria’s (CBN) newly introduced regulatory framework for financial service providers, warning that the policy could threaten the survival of small and medium-sized fintech companies operating in the country.
The operators, under the umbrella of the Association of Mobile Money and Bank Agents of Nigeria (AMMBAN), said the new rules particularly the proposed capital requirements and licensing conditions—favour large financial technology firms while potentially forcing thousands of small operators out of business.
Under the CBN’s new guidelines, PoS operators and other payment service providers are expected to meet stricter compliance obligations, including higher minimum capital thresholds, enhanced Know Your Customer (KYC) processes, and stronger operational controls aimed at curbing fraud and money laundering.
While industry stakeholders acknowledged the CBN’s intention to strengthen the payment ecosystem, many argue that the new framework could have unintended consequences for the financial inclusion drive, especially in rural and low-income communities where PoS agents remain the primary access point for banking services.
In a statement issued on Friday, AMMBAN National President, Victor Olojo, said the new rule, if implemented without adjustment, could destabilise the agent banking sub-sector and reverse recent gains in financial inclusion.
“We support the CBN’s effort to sanitise the system and reduce fraud. However, the proposed capital and licensing requirements are unrealistic for small operators who make up over 70 per cent of the PoS industry. If enforced as currently outlined, it could wipe out thousands of small businesses and lead to job losses,” Olojo warned.
He added that the association had written to the apex bank, urging it to review the guidelines and adopt a tiered regulatory approach that recognises the varying scales of operation within the fintech space.
Several fintech entrepreneurs echoed similar concerns, noting that while stronger oversight is necessary, the CBN must balance regulation with inclusivity. They cautioned that shutting out smaller operators would deepen the urban-rural financial access gap and slow down cashless policy adoption.
“The sector has created millions of jobs and driven financial access to the grassroots,” said a fintech analyst, Bamidele Ojo. “Overregulation could push operators underground or reduce competition, ultimately hurting consumers.”
The CBN has not yet responded to the growing industry pushback, but sources suggest the regulator may hold consultations with stakeholders in the coming weeks to address the concerns raised.
The PoS and fintech sub-sector has been one of Nigeria’s fastest-growing industries, processing trillions of naira in transactions annually and serving as a lifeline for millions of unbanked Nigerians. Analysts warn that any disruption in the space could have far-reaching implications for digital payments, employment, and economic inclusion.
