How ₦1.2m CBN Cap On POS Transactions Is Affecting Traders In Taraba By Joachim Agbo

Taraba's predominantly cash-driven markets are bracing for change as the Central Bank of Nigeria (CBN) enforces new agent-banking guidelines limiting daily POS transactions to ₦1.2 million per agent. While traders say the policy will disrupt business in the short term, financial experts argue the reforms will ultimately make transactions safer and deepen financial inclusion across the state.

Under the new framework, banks and fintechs must file monthly reports on agent activities, ensure transactions run through regulated accounts or wallets, and hold POS agents personally liable for misconduct. Violators risk sanctions or loss of operating licenses.

For Taraba's informal economy, the immediate implications are significant. Traders who deal in high-value cash sales — especially in livestock, grain, building materials and automobile markets — may now have to split payments across multiple days, use several agents, or shift to alternative payment methods. Analysts say the shift could temporarily slow cash flow, especially during peak market days.

At the Iware Cattle Market, reactions are mixed.
"Most of our transactions involve large sums," said Mr. Bello Musa, a livestock dealer. "With this new limit, we may have to divide payments over several days or use multiple agents, and that will slow business."

POS operators are equally concerned.
"We sometimes process over ₦2 million in one day," said Amina Ibrahim. "This new cap means we must turn people back or delay their transactions — which will frustrate traders."

Despite the pushback, economists insist the guidelines are necessary to formalise the financial system. The CBN also mandated that super-agents maintain at least 50 agents across all six geopolitical zones, ensuring service availability even in rural Taraba.

"This is a structural reform," said a financial analyst at Taraba State University, Jalingo. "It may be painful at first, but it lowers risks of robbery, reduces fraud, and builds trust in electronic payments."

The framework also seeks transparency by directing banks to publish verified lists of POS agents and restricting arbitrary closure or relocation of service points — a move expected to stabilise access to financial services in small towns and remote communities.

While traders prepare for reduced cash flexibility, analysts say the policy aligns with national goals of safer, more traceable transactions and inclusive economic growth.

In a state where agriculture, local trade and small businesses dominate, the reforms represent both short-term disruption and long-term opportunity: safer markets, stronger financial access, and a more resilient economy.

Joachim Agbo is the Economy and Financial Editor of Rock FM Jalingo.