African Development Bank (AfDB) has announced plans to extend a $500m loan to Nigeria this year as part of a $1bn budget support programme, citing the country’s ongoing economic reforms under President Bola Tinubu as a major factor driving its decision.

Bode Oyetunde, executive director representing Nigeria and São Tomé and Príncipe on the AfDB Board, disclosed this on Monday during the Nigerian Economic Summit in Abuja.

He said the facility, which is subject to board approval, could be finalized before the end of the year.

According to Oyetunde, the bank is providing the funding in recognition of Nigeria’s “bold and aggressive macroeconomic reforms” since President Tinubu assumed office in May 2023.

He noted that the AfDB intends to sustain its support for the country’s fiscal consolidation and structural transformation agenda.

“We have been working strongly to support Nigeria’s very bold and aggressive macroeconomic reforms under President Tinubu. Given all these reforms, it was important to support Nigeria,” Oyetunde told Reuters on the sidelines of the summit.

“They asked us for $1.5bn. We are able to do $1bn over two years. Last year, we provided $500m in budget support. This year, we are looking to do another $500m, subject to board approval.”

The $500m loan represents the second tranche of a two-year, $1bn budget support initiative designed to bolster Nigeria’s fiscal resilience and accelerate policy reforms in key economic sectors. The first tranche, amounting to $500m, was disbursed in 2024.

Since President Tinubu took office, Nigeria has implemented a series of sweeping economic measures, including the removal of long-standing fuel subsidies, unification of the foreign exchange market, and the introduction of comprehensive tax reforms.

These steps aim to stabilize public finances, attract foreign investment, and restore confidence in the nation’s economy.

Oyetunde further explained that the AfDB’s engagement is focused on supporting Nigeria’s fiscal discipline and power sector reforms, two critical areas that underpin sustainable growth and job creation.

The power sector, in particular, has remained a key priority for the AfDB’s intervention in West Africa, given its centrality to industrial productivity and private sector expansion.

The multilateral lender’s endorsement comes amid renewed investor interest in Nigeria’s reform programme, with global financial institutions acknowledging the government’s efforts to address long-standing structural bottlenecks.

The latest support from the AfDB is expected to ease fiscal pressures on the federal government, strengthen its reform implementation capacity, and provide much-needed liquidity for developmental programmes in the medium term.

House of Representatives has constituted an Ad-hoc Committee to examine the regulatory and security implications of cryptocurrency adoption and Point-of-Sale (PoS) operations across Nigeria.

Tajudeen Abbas, speaker of the House, announced the formation of the committee during an inauguration ceremony on Monday, saying the move became necessary following increasing reports of fraud, cybercrime, and consumer exploitation within the digital finance ecosystem.

Abbas said the House was worried about the rising number of scams linked to unregulated PoS and crypto transactions, stressing that Nigeria’s digital financial space had become a breeding ground for fraudulent practices due to weak oversight mechanisms.

“It is because of the absence of clear rules, coupled with the volatility and complexity of the technology, that the House of Representatives found it imperative to establish regulations and consumer protection measures,” the Speaker said.

He explained that the proposed framework would help close existing loopholes and protect citizens from exploitation by Virtual Asset Service Providers (VASPs), including cryptocurrency operators and other digital finance platforms.

According to Abbas, the ad-hoc committee’s primary assignment will include conducting public hearings and gathering submissions from key stakeholders such as the Central Bank of Nigeria (CBN), fintech companies, cybersecurity experts, and consumer rights organisations.

“The committee is necessary to undertake public hearings to collate relevant information that will guide the House in developing legislation for a regulatory framework for the adoption of cryptocurrency and virtual assets in our economy,” he added.

The Central Bank of Nigeria has introduced new operational guidelines for agent banking across the country, capping daily cumulative transactions per agent at N1.2 million.

The revised framework, released on Monday, also mandates all financial institutions to submit monthly reports on the activities of their Point-of-Sale agents to enhance oversight and service quality.

The circular (PSP/DIR/CON/CWO/001/049), signed by the Director of the Payments System Management Department, Musa Jimoh, aims to strengthen financial stability, promote inclusion, and protect consumers.

The circular, addressed to all deposit money banks, other financial institutions, and payment service providers, takes immediate effect, while provisions on agent location and exclusivity will become effective from April 1, 2026.

It read, “The Central Bank of Nigeria, in furtherance of its mandate for the stability of the financial system and pursuant to its role in deepening the financial system, hereby issues the Guidelines for the Operations of Agent Banking in Nigeria.

“The Guidelines aim to establish minimum standards for operating agent banking in Nigeria, enhancing agent banking to provide financial services and promoting financial inclusion, encouraging responsible market conduct and improving service quality in Agent Banking operations.

“This circular takes effect from the date of release, while the implementation of agent location and agent exclusivity shall be with effect from April 1, 2026.

“All stakeholders are required to ensure strict compliance with the Guidelines and all other regulations, as the CBN continues to monitor developments and issue guidance as may be appropriate.”

Under the new rules, all agent banking transactions must be conducted through a dedicated account or wallet maintained by the principal financial institution to ensure transparency and better oversight.

The CBN warned that using non-designated accounts for agent operations would constitute a regulatory violation and attract sanctions.

Agents found guilty of misconduct, fraud, or related offences will be held personally liable and may be placed on industry watchlists or have their agreements terminated.

Financial institutions, referred to as “principals”, are now required to publish and regularly update the list of all their agents on their official websites and display them within their branches.

Super agents must have at least 50 agents distributed across the six geopolitical zones to ensure wider coverage and access to financial services in underserved areas.

The guidelines also stipulate that no agent can relocate, transfer, or close its banking premises without prior written approval from its principal or super agent.

A relocation notice must be displayed prominently at the business premises for at least 30 days to notify customers.

All agent transactions must now be conducted in real time using a secure, interoperable payment infrastructure.

Financial institutions are mandated to deploy technologies that enable instant settlements and immediate reversals in the event of system failure.

Transaction receipts must include the agent’s name and geographical coordinates, while audit trails and settlement records are to be preserved for at least five years to support regulatory oversight.

The new framework pegs the daily cumulative cash-out limit at N1.2m per agent, although the apex bank reserved the right to review the limit in line with the CBN Guide to Charges for Banks and Other Financial Institutions.

“POS agents are restricted to a maximum of N1.2 million per day. Individual customers are limited to N100,000 in daily transactions.

“These limits are intended to curb misuse, enhance financial integrity, and protect consumers within the agent banking framework,” it stated.

Additionally, all devices deployed for agent banking must be geo-fenced or tagged to operate strictly within the registered location to prevent unauthorised mobile use.

Financial institutions are required to submit monthly returns to the CBN, detailing transaction volumes and values, incidents of fraud, the number of active agents, customer complaints, and training conducted, among other indicators.

“The monthly reports must include comprehensive data on the nature, value, and volume of transactions conducted by agents. Submissions are to be made no later than the 10th day of the following month,” it added.

The apex bank warned that it reserves the right to demand additional information, carry out inspections, or exercise direct supervisory powers over any agent or financial institution at any time.

Institutions that violate the guidelines risk administrative sanctions, suspension from onboarding new agents, blacklisting, removal of management officials, or licence revocation.

“The CBN may, in the event of a breach, invoke any or all sanctions against any defaulting participant in the agent banking system,” the circular read.

The apex bank said the new framework underscores its commitment to deepening financial inclusion, strengthening agent banking oversight, and building public confidence in Nigeria’s growing financial services ecosystem.