Agent banking, also known as agency banking, is a form of financial service provision that allows banks to offer financial services through third-party agents. This model is rapidly gaining popularity in Nigeria, where it is being used to extend financial services to previously underserved communities.

Agent banking has become an important tool for promoting financial inclusion in Nigeria, where more than 50% of the population is unbanked. By allowing third-party agents to provide financial services, banks can reach previously underserved areas and populations, including rural communities and low-income earners. In this blog post, we’ll explore the growth of agent banking in Nigeria, its benefits, and the challenges facing the industry.

The Growth of Agent Banking in Nigeria

Agent banking in Nigeria started gaining traction in 2013, when the Central Bank of Nigeria (CBN) introduced the regulatory framework for the operation of agency banking in the country. Since then, the number of licensed agents has grown steadily, and the industry is now estimated to have over 200,000 agents spread across the country.

The growth of agent banking in Nigeria has been driven by several factors, including the need to promote financial inclusion, reduce the cost of providing financial services, and increase the reach of financial services to remote and underserved areas.

Benefits of Agent Banking in Nigeria

Agent banking has several benefits for both banks and customers in Nigeria. For banks, it allows them to expand their reach and increase their customer base without incurring the high costs associated with setting up physical branches. This is particularly important in Nigeria, where the cost of building and maintaining branches can be prohibitive.

For customers, agent banking provides a convenient and accessible way to access financial services, even in remote or underserved areas. Customers can deposit and withdraw cash, transfer funds, pay bills, and even open bank accounts using their local agents, without having to travel long distances to the nearest bank branch.

Challenges Facing Agent Banking in Nigeria

While agent banking has many benefits, there are also several challenges facing the industry in Nigeria. One of the biggest challenges is the lack of trust in the financial system, particularly in rural areas. Many people in these areas are wary of using formal financial services, and prefer to keep their money in informal savings groups or with friends and family.

Another challenge facing the industry is the lack of adequate infrastructure, such as reliable electricity and internet connectivity, which can make it difficult for agents to operate effectively. Additionally, there is a shortage of qualified agents in some areas, which can limit the reach of agent banking services.


Agent banking has the potential to revolutionize the financial services industry in Nigeria by increasing access to financial services and promoting financial inclusion. While the industry has made significant progress in recent years, there is still a long way to go to ensure that all Nigerians have access to formal financial services. By addressing the challenges facing the industry and continuing to innovate and expand, agent banking has the potential to drive economic growth and development in Nigeria for years to come.

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