Fasasi Sarafadeen Posted 21st July 2025

Several conversations are ongoing on,which policy shifts are required to reform AGENT BANKING business in Nigeria. We all recall that Nigeria retail banking shifted from branch based to agent network and non-banks (FINTECHS) control over 60% of the market share. In the last 10 years, non-exclusivity ( each agent working with service provider of his or her choice), has being the magic behind the explosion of agent banking services with over 2 million bank agents, each located at every 1km distance. The convenience of service has endeared most Nigerians to bank agents.

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WHY THEN THE SHIFT CONVERSATIONS?

Recently, increase in frauds across digital platforms were alleged to be due to agent activities (though,the data says otherwise as most frauds are traced to bank branches). The regulators also feel that exclusivity will enhance responsibility of FIs.


Basically, the arguments are of security concerns & regulatory supervision. financial inclusion growth, job creation etc are of less consideration.

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JUNGLE OPINION
Has exclusivity solved such concerns in Nigerian market where enforced? NO
Telecom industry: MTN, Airtel, glo etc operate exclusivity but sims are still been registered for bandits, mobile money by telcos were used to cashout stolen card inflows, 3rd party KYC sims are been sold at our markets & borders.
Visit MTN/Aitel kiosk(that should be exclusive to MTN/Airtel services) , you will be shocked that opay or palmpay Pos is being used to debit ATM cards for customers.😃


Nigeria is a perculiar market because agents are not owned by the FI, agents only partner by using channels.
In reality, there are 2 layers in Agency banking; the regulated (FI with their channels) & the unregulated ( the agent entrepreneur who owns his biz). The 2nd layer can only be regulated through collaboration with agent associations & industry collaborations. Unfortunately, there is a disconnect. No policy fits without collaboration.

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