CBN Mandates Banks To GeoTag POS Terminals, What You should Know
The Central Bank of Nigeria (CBN) has ordered all Point of Sale (PoS) terminals in the country to be geo-tagged within 60 days, warning that devices operating outside their registered locations will be shut down.
In a circular issued on August 25, 2025, the CBN directed banks, fintechs, and Payment Terminal Service Providers (PTSPs) to register every PoS device with exact GPS coordinates. The regulator set October 20, 2025, as the compliance deadline. The new rule covers both existing and newly deployed PoS devices. Any device not geo-tagged within the deadline will be deactivated. The CBN said it will begin nationwide compliance checks immediately after the deadline.
Reason CBN Is Taking This Step
The CBN said the directive aims to eliminate cloned or “ghost” terminals, stop unauthorised PoS activity, and improve real-time tracking of transactions. By requiring precise location data, the regulator wants to make every device traceable and every transaction secure.
Each PoS terminal must now capture and transmit its GPS location at the start of every transaction. If a device operates beyond a 10-metre radius of the merchant’s registered business address, it will be flagged. The regulator also instructed operators to ensure devices have built-in geolocation features and double-frequency GPS receivers for accurate tracking. All terminals must connect to the National Central Switch, which will monitor activity through a special software development kit (SDK).
Who Must Comply
The directive applies to all licensed PoS operators. This includes major banks, fintech companies like Moniepoint, OPay, and PalmPay, and all PTSPs responsible for device deployment. Operators must register each terminal with a licensed Payment Aggregator and provide precise merchant coordinates before activation.
How This Affects Nigerians
The CBN’s directive will also affect how everyday Nigerians access cash and make payments. For millions of people who rely on PoS agents for daily transactions, especially in areas with limited banking infrastructure, the new rules could mean fewer terminals in the short term as operators rush to comply. Some agents may temporarily shut down if they cannot geo-tag their devices on time, leading to longer queues and reduced convenience.
On the positive side, the directive promises stronger security. By eliminating cloned and unauthorised terminals, customers stand a better chance of avoiding fraud, double charges, and disputes over payments. Shoppers can have more confidence that every PoS device they use is legitimate and traceable. In the long run, the CBN expects that ordinary Nigerians will benefit from a safer, more reliable payment ecosystem, even if the adjustment feels inconvenient at first.
The POS Industry in Nigeria
Nigeria’s PoS industry has grown rapidly in recent years. As of 2023, the country had 1.5 million PoS agents, meaning one agent for every 80 people. A Bloomberg report estimated about 1,600 PoS operators per square kilometre, reflecting how densely spread the devices are.
This boom in usage has also created challenges. Fraudulent terminals, unauthorised operators, and weak oversight have raised security concerns. The CBN believes stricter regulation is the only way to protect consumers and sustain trust in digital payments.
The geo-tagging rule builds on earlier measures. Last year, the CBN mandated that all PoS transactions pass through licensed Payment Terminal Service Aggregators (PTSA) to improve transparency. The regulator also required operators to register devices with the Corporate Affairs Commission (CAC) to formalise merchant records.
Compliance Begins October
With compliance checks set to begin in October, operators have less than two months to upgrade an estimated 4.2 million active PoS terminals across the country. Those that fail to comply will lose access to the payment system. The CBN framed the initiative as part of a broader effort to modernise Nigeria’s payment ecosystem, strengthen consumer protection, and ensure that all digital transactions are traceable. “The objective is simple: protect Nigerians from fraud, secure digital payments, and keep the financial system transparent,” a senior CBN official said while explaining the directive. By making every PoS transaction traceable, the CBN aims to build a system where digital payments are not only fast and convenient but also safe and accountable.
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