CBN Tightens PoS Rules With Geo-Tagging

The Central Bank of Nigeria (CBN) has introduced new regulatory measures aimed at curbing fraud in the point-of-sale (PoS) sector, mandating geo-tagging of payment terminals and migration to global payment messaging standards.

The new rules, contained in a circular titled “Migration to ISO 20022 Standard for Payment Messaging and Mandatory Geo-Tagging of Payment Terminals” and signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf, were released on August 25, 2025.

CBN Governor, Dr. Olayemi Cardoso, said the reforms are designed to strengthen oversight of digital payment channels, protect consumers, and expand access to financial services.

Under the policy, all PoS devices must be geo-tagged using GPS and registered with a licensed payment aggregator. Terminals are restricted to operate within 10 metres of their registered location, with any transactions outside the set radius automatically flagged.

“All terminals must capture and transmit geo-location data at the start of every transaction. Devices not directly routed through a Payment Terminal Service Aggregator (PTSA) will be barred from processing payments,” the circular stated.

The apex bank also ordered that merchant acquirers route transactions through either of the two licensed aggregators—Nigeria Inter-Bank Settlement System (NIBSS) or Unified Payment Services Limited. Payment processors must integrate with both systems. A 60-day compliance window has been given, with full enforcement beginning October 31, 2025.