International Journal of Management, Economics and Social Sciences
2025, Vol. 14(3-4), pp. 54 – 75.
eISSN 2304 – 1366
https://www.ijmess.com
DOI: 10.32327/IJMESS/14.3-4.2025.3
2025, Vol. 14(3-4), pp. 54 – 75.
eISSN 2304 – 1366
https://www.ijmess.com
DOI: 10.32327/IJMESS/14.3-4.2025.3
Managing Risks and Enforcing Standards through Agent Banking Networks: Evidence from Nigeria
Olawale Ajai1
Emma Etim2
1Lagos Business School, Lagos, Nigeria
2University of Nottingham, Nottingham, United Kingdom
Emma Etim2
1Lagos Business School, Lagos, Nigeria
2University of Nottingham, Nottingham, United Kingdom
ABSTRACT
A broad consensus holds that agent banking networks expand
financial inclusion, particularly when the formal financial
infrastructure is limited. Effective governance of such networks,
however, may depend on proportionate regulation and clear
delegation of supervisory responsibilities from regulators to
principals, and ultimately to agents. This study examines how
agency banking standards are understood and enforced, which risks
are most salient, and how self-regulation operates within
Nigeria’s rapidly expanding agent banking ecosystem. Mixedquestion
survey design was employed, combining closed-and openended
items to capture complementary quantitative and qualitative
evidence from agents and financial service providers. Data were
analyzed using descriptive statistics and thematic analysis.
Findings reveal a concentrated risk profile centered on fraud and
cybercrime, physical insecurity and robbery, and network
unreliability. The agent association (AMMBAN) was viewed as
effective in supporting compliance, and sanctions were largely
perceived as fair and proportionate. Interpreted through an
integrated principal–agent and stewardship theoretical framework,
network scale has outpaced monitoring capacity in delegated
oversight arrangements. This creates enforcement friction, which
is partially mitigated by collective association-led governance.
This study provides multi-stakeholder evidence on operational
realities, refines principal–agent and stewardship accounts for
high-velocity networks, and offers actionable guidance for
regulators, principals, and agent associations.
Keywords: Agency banking, financial inclusion, risk management, sanctions, self-regulation
JEL: D82, G21, O16
Keywords: Agency banking, financial inclusion, risk management, sanctions, self-regulation
JEL: D82, G21, O16
