E-Financial
AMMBAN Blames Operators for Proliferation of Unlicensed POS Agents
The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has blamed operators in the financial services ecosystem for the proliferation of unlicensed point of sale terminal (POS) agents also known as ‘umbrella’ agents, which, according to them, has brought great disrepute to the operations in the country.
According to AMMBAN, the ‘umbrella’ agents that are not legally registered and have allowed several frauds to be perpetrated through them.
Speaking in Lagos, at the Sixth National Conference of the association with the theme: “Agency Banking in the Digital Age: Enforcing Standard, Seizing Opportunities and Managing Risks,” the President, Olojo Victor, in his welcome address, said the association would no longer tolerate activities of those tarnishing the image of the body and therefore urge for certification of agents in the ecosystem.
Tackling this menace headlong, Victor said AMMBAN would be working with the Central Bank of Nigeria (CBN), the Shared Agent Network Expansion Facility (SANEF), Lagos State Residents Registration Agency (LASRRA) and operators to ensure only agents registered are allowed to operate in the country.
“We are also working with the operators, we have Association of Licensed Mobile Payment Operators present at this event. We have been working together, the financial industry is huge as such we have companies that are issuing out POS and they are not licensed directly by the central Bank of Nigeria.
“Those companies most times don’t follow the rule established by the CBN. Because they have API which enables them to start issuing out POS to recruited agents without following CBN guideline. We are working with the association of operators that gives out the links for POS to work on the network to fish out those companies that are not following the standard rules given by CBN,” he said.
Speaking on year 2022 operations, Victor, who said there are currently 1.4 million registered agents under AMMBAN and hopes to increase the number, said the year has been a phenomenal one for agents and the industry at large as there have been significant events that shaped the sector.
According to him, registered PoS agents have reduced the rates of unemployment in the country because it has created job opportunities and boosted the economy.
He said: “Most significant is the quantum leap in the aggregate number of new mobile money and bank agents we have in the market space as of today.
According to the Nigeria Inter-Bank Settlement System Plc (NIBSS), in the last nine months of this year 2022, Nigerians spent a total of N6.05 trillion through the PoS, which is almost the same amount recorded in the year 2021, the total figure stood at N6.4 trillion.
“NIBSS said the volume of transactions on PoS went up as it increased by 14 per cent year on year to 100.4 million in September 2022,” he stated.
According to him, that feat was not without challenges. The AMMBAN President said the association had a spate of challenges some of which includes the cost of running business, delays in the reversal of failed transactions, network issues, bank/customers problems, insecurity, poor power supply, among others.
Victor, who described the theme of this year’s conference as very apt and befitting for this present time, said agency banking has indeed evolved with the impressive growth being recorded, it has become expedient for us all to sit and discuss issues around proper regimentation, standardization and seizing opportunities within the business space.
In his Keynote Presentation on the theme of the conference, Head, Department of Strategy, Lagos Business School, Prof. Olawale Ajai, said agency banking doesn’t go without security risks, although such may be reduced by avoiding holding too much cash at once.
Ajai said to curb the menace of agents tarnishing the image of AMMBAN, the regulator needs to work with the association.
According to him, there is a need to make the ‘umbrella’ agents become members of AMMBAN to ensure improved services. He stressed the need to take the services to rural areas to ensure the unserved and underserved communities are captured adequately well.
The Development Bank of Nigeria (DBN) has received shareholders’ approval to invest $2.5 million or 25% equity stake in the proposed Youth Entrepreneurship Investment Bank (YIB) — a new investment vehicle designed to provide equity funding to youth-led businesses in Nigeria.
The approval came during the bank’s 8th Annual General Meeting (AGM) which was held in Abuja.
The move is a strategic step aligned with the bank’s broader mission to support Micro Small and Medium Enterprises (MSMEs), job creation and entrepreneurship among Nigeria’s youth.
According to Tony Okpanachi, DBN Managing Director, Youth Entrepreneurship Investment (YIB) is not a conventional bank. It is an investment vehicle that will deploy equity into promising youth-owned enterprises.
“This is about backing ideas and unlocking growth through long-term capital — not debt,” Okpanachi told journalists after the AGM.
The initiative is a partnership between DBN, the Nigeria Sovereign Investment Authority (NSIA), and the African Development Bank (AfDB), with additional backing expected from development finance institutions.
The African Development Bank (AfDB) is currently in discussion to provide debt financing, which would bolster the capital available to the vehicle without diluting equity.
“This $2.5 million is DBN’s initial stake,” Okpanachi said. “We are co-investing alongside NSIA, and this sets the stage for broader institutional participation — both local and global.”
YIB aims to fill a critical funding gap in Nigeria’s startup ecosystem. While the country has a vibrant pool of young entrepreneurs, access to early-stage funding remains limited. Many businesses rely on short-term loans or informal capital, which often constrains scalability and long-term planning.
Okpanachi emphasised that YIB’s structure is deliberately designed to avoid the trappings of a traditional bank.
“This is not a commercial bank. It won’t provide loans or open retail accounts. It’s structured purely as an equity-focused investment vehicle, targeting scalable ventures with strong fundamentals and youth ownership”, he noted.
This will be DBN’s second strategic investment following the establishment of its wholly owned impact credit guarantee subsidiary, which offers partial credit guarantees to MSMEs.
Final structuring of YIB is underway. Following the shareholder greenlight, the promoters are now coordinating with the relevant stakeholders to complete incorporation, legal frameworks, and capital mobilisation.
“We expect all groundwork to be finalised by the end of this year. With operations likely to begin by early 2026,” Okpanachi disclosed.
The move comes amid growing concerns over Nigeria’s rising youth unemployment rate.
By investing directly into youth-led businesses, DBN and its partners aim to accelerate job creation, promote innovation, and catalyse broader economic development.
“There’s already strong interest from global players,” the MD noted, though he declined to name institutions due to ongoing negotiations.
“What we are doing is laying the foundation. YIB will serve as a credible, well-structured platform to crowd in institutional capital and scale youth-driven entrepreneurship.”
He added that YIB is not a one-off initiative but part of a long-term strategy to create sustainable investment channels focused on Nigeria’s demographic dividend.
“This is more than a financial transaction,” Okpanachi said. “It is a statement of intent. We believe in the entrepreneurial potential of Nigerian youth — and we are backing that belief with real capital.”
The Central Bank of Nigeria (CBN) has slammed a ₦250 million fine on Paystack for operating Zap, its peer-to-peer payment app, as a wallet in breach of its regulatory approval.
The apex bank flagged Zap as a deposit-taking product, a function reserved exclusively for institutions with microfinance or banking licences, according to a report by TechCabal.
Launched in March, Zap allows users to send and receive money, positioning itself as a consumer-facing digital wallet.
However, Paystack only holds a switching and processing licence, which permits it to facilitate transactions but not to hold customer funds. This regulatory limitation is at the heart of the CBN’s sanction, sources familiar with the matter said.
“Paystack is working closely with the regulator as they further review Zap, and out of respect for the process, we won’t be making any public comments at this time,” a company spokesperson said.
The penalty comes amid a legal dispute between Paystack and Zap Africa, a Nigerian crypto startup, which has accused the fintech of trademark infringement.
In Nigeria’s highly regulated financial services space, digital wallets are considered deposit-taking entities, and offering such services without the requisite licence raises compliance concerns for the regulator.
Although Zap reportedly does not directly hold customer funds, it operates in partnership with Titan Trust Bank, which is authorised to accept deposits.
This is Paystack’s most significant publicly disclosed regulatory sanction since it received CBN approval in 2016. It reveals the growing scrutiny facing fintech firms as they transition from enterprise-focused offerings to consumer-facing financial services.
Guaranty Trust Bank (GTBank) has announced an increase in its SMS transaction alert fee from ₦4 to ₦6 per message, effective May 1, 2025. The bank cited a recent rise in telecommunication tariffs by service providers as the reason for the adjustment.
In a message to customers, GTBank explained that SMS alerts sent to international phone numbers would attract higher charges due to varying telecom costs. The bank emphasized the importance of transaction alerts in helping customers monitor account activity
Customers who no longer wish to receive SMS alerts have the option to update their alert preferences by submitting a form available on the bank’s website via email. This move allows customers to manage their notification preferences according to their needs.
The fee increase affects GTBank customers, who will now be charged ₦6 per SMS alert for transactions
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