In Nigeria’s fast-growing agency banking ecosystem, tensions are rising between regulatory direction and the day-to-day realities of POS operators serving millions of customers. Com. Odetunde Olawale, National Chairman of the Agency and Mobile Banking Operators (AMBO), a unit of NUBIFIE, says the sector is under increasing strain from policies that do not fully reflect on-the-ground conditions.
Speaking on TRADE FM’ BUSINESS BREAKFAST BRIEFING, Comrade Olawale noted that while the Central Bank of Nigeria (CBN) continues to regulate and strengthen the financial system, gaps in implementation are weakening policy effectiveness. According to him, operators—especially in rural and semi-urban areas—are often left out of key decision-making processes despite being central to financial inclusion.
The AMBO National Chairman, explained that many policies are designed without sufficient consultation with practitioners who handle cash operations, customer service, and field risks daily. This disconnect, he said, contributes to uncertainty and operational inefficiencies across the sector.
A major challenge, he highlighted, is cash liquidity. Despite governments effort to reduce cash circulation, POS operators still depend heavily on physical cash to function effectively. In some areas, informal cash sourcing has become necessary just to sustain daily operations.
He added that insecurity remains a serious concern, with agents frequently exposed to fraud, robbery, and in some cases organized criminal activity. These risks, he said, are not adequately addressed in existing regulatory frameworks.
Profitability is also under significant pressure. Operators face multiple deductions including bank charges, company fees, logistics costs, and regulatory transaction charges. While each fee may appear small, the cumulative effect significantly reduces margins, especially for high-volume agents.
Olawale referenced the CBN’s transaction charge structure for ₦1,000 to ₦10,000 transactions, noting that although charges seem modest individually, they accumulate quickly and erode earnings. At the same time, agents cannot easily increase customer fees due to widespread economic hardship.
In many locations, transaction fees range between ₦100 and ₦150, but operators say even this level is becoming unsustainable. Infrastructure challenges such as unstable electricity supply, particularly in cities like Lagos, further increase operational costs and reduce profitability.
He also criticized emerging policies such as exclusivity arrangements that could limit agents to single service providers. According to Comrade, Odetunde Olawale, such measures reduce operational flexibility and expose agents to downtime risks when networks fail, unlike the banking sector where multiple systems provide redundancy. Olawale called for more inclusive policymaking, urging regulators to engage industry associations like AMBO before introducing new frameworks. He warned that without collaboration and a clearer understanding of field realities, continued policy and cost pressures could threaten business sustainability, reduce employment opportunities, and weaken financial inclusion efforts in Nigeria
