CBN's New PoS Rules Aim to Enhance Service Quality in Nigeria
The Central Bank of Nigeria (CBN) has implemented new rules for point of sale (PoS) agents, effective April 2026. Meanwhile, Kenya is considering a bill that could turn corporate social responsibility (CSR) contributions into startup capital. In other news, M-KOPA, a Kenyan pay-as-you-go (PAYGO) pioneer, has turned a profit for the first time in over 10 years.
The CBN aims to improve service quality and bring order to the fast-growing agent banking sector, which boasts over 5 million active PoS terminals processing billions of dollars annually. Under the new rules, each PoS agent must choose and stick with one operator, ending the practice of using multiple machines from different providers. The new guidelines also introduce geo-tagging of PoS machines and a daily withdrawal limit of ₦1.2 million ($816.18) for each agent.
In Kenya, the National Innovation Agency (KeNIA) is drafting a plan to legally require big companies to channel part of their corporate social responsibility (CSR) budgets into an innovation fund for startups. If implemented, Kenya could become the first African country to turn corporate responsibility into startup capital. The search results, however, do not provide the name of the person who proposed the bill.
M-KOPA, a Kenyan pay-as-you-go (PAYGO) pioneer, has turned a profit for the first time in over 10 years, posting a profit of KES 1.2 billion ($9.2 million) in 2024. The company's turnaround comes as investors demand clearer paths to profitability from African startups, with M-KOPA focusing on smartphone financing and establishing an assembly plant in Nairobi.
Starlink, the Elon Musk-owned satellite internet company, has revealed a $145 million plan to enter South Africa. The plan includes compliance with local empowerment laws and investing in local infrastructure.
The exclusivity rule for PoS agents may lead to better services and incentives for agents but could also limit their flexibility and drive up operational costs, potentially resulting in higher transaction charges for customers.
The CBN's new rules aim to enhance service quality and order in Nigeria's agent banking sector. Kenya's proposed bill could revolutionise startup funding, while M-KOPA's profit turnaround signals a promising future for African startups. Starlink's South African expansion plan also brings hope for improved connectivity.
