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This study examines the role of Point-of-Sale (POS) agent banking in deepening financial inclusion and expanding the financial system in Nigeria between 2010 and 2025. Despite significant policy interventions by the Central Bank of Nigeria (CBN) and the proliferation of agent banking networks, a large proportion of the Nigerian population remains financially excluded from formal services. Employing a mixed-methods research design, the study draws on secondary data from the CBN, National Bureau of Statistics (NBS), Enhancing Financial Innovation and Access (EFInA), and World Bank datasets, complemented by primary survey data from 400 respondents across six geopolitical zones. The study is anchored on the Financial Intermediation Theory, the Technology Acceptance Model (TAM), and the Agency Theory. Findings reveal that POS agent banking has significantly contributed to financial deepening through increased deposit mobilisation, credit access, transaction volumes, and geographic outreach, particularly in rural and peri-urban communities. However, challenges including network failures, fraud, liquidity constraints, low financial literacy, and inadequate regulatory enforcement continue to impede its potential. The study contributes original empirical evidence on the agent banking–financial deepening nexus in an emerging economy context and provides contextual policy recommendations for regulators, financial institutions, and development partners.
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Chigozie et al. (2026) studied this question.