All Point of Sales (PoS) terminals operating in Nigeria have been given a 60-day deadline to incorporate geo-tagging features.
The Central Bank of Nigeria (CBN) has issued a new mandate requiring all Point-of-Sale (PoS) terminals in the country to be geo-tagged and connected to the National Central Switch within 60 days from August 25, 2025. This stringent move aims to tighten control over the PoS industry and curb fraudulent activities.
The mandate, announced in a circular on August 25, 2025, applies to licensed operators such as Moniepoint, OPay, Palmpay, banks, and Payment Terminal Service Providers (PTSPs). These entities are responsible for ensuring every device in their networks complies with the geo-tagging rules.
Last year, operators were required to route transactions through licensed aggregators and register with the Corporate Affairs Commission. Now, they are tasked with enforcing compliance within their networks as well.
As part of the mandate, PoS operators are required to upgrade existing terminals with built-in GPS systems and connect them to the National Central Switch for real-time location tracking. New PoS machines will not be activated unless they are geo-tagged from the start.
The surge in PoS agents usage, driven by the convenience they offer, has led to concerns about bad players exploiting the system. As of March 2025, there were 5.9 million active PoS terminals out of 8.36 million registered, and the number of PoS agents in Nigeria surpassed 1.5 million in 2023. With at least five agents being common on any random street, the increase in PoS agents has been significant.
If a PoS operator uses a device outside its registered location, even more than 10 meters away, the device could be blocked. Checks for compliance will begin on October 20, 2025.
The objective of the mandate is to reduce fraud, increase customer safety, and improve regulators' oversight of Nigeria's payments scene. If successful, it will mark the end of the golden age of loosely monitored PoS transactions for bad players.
The surge in PoS usage has been a boon for many Nigerians, alleviating the need for long ATM queues. The convenience they offer has led to a surge in PoS agents, with approximately one PoS agent for every 80 people in Nigeria. However, this convenience has also led to concerns about potential exploitation of the system.
The new rule is the strictest move yet to address these concerns and ensure the safety and security of Nigeria's payments scene.
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