Nigeria's central bank mandates that all Point of Sale (PoS) terminals across the nation must be equipped with geolocation technology within the next 60 days.
The Central Bank of Nigeria (CBN) has taken a significant step to regulate the Point-of-Sale (PoS) industry within the country. With the number of PoS agents in Nigeria crossing the 1.5 million mark in 2023, making at least five agents common on random streets, the CBN has mandated that all PoS terminals be geo-tagged to curb potential fraudulent activities.
This move is intended to wind down the golden age of loosely monitored PoS transactions in Nigeria. Operators of PoS devices, including Moniepoint, OPay, Palmpay, and banks, are responsible for ensuring their devices comply with these rules. The deadline for upgrading PoS terminals with built-in GPS systems and connecting them to the National Central Switch is set for October 20, 2025.
New PoS machines will not be activated unless they are geo-tagged from the start. Any PoS terminal used outside its registered location will be blocked, including movements more than 10 metres away from the registered location. This is the strictest move yet in controlling how the PoS industry operates in Nigeria.
The designated period for deactivating PoS terminals that are not geo-tagged is until October 31, 2025. The CBN's circular, issued on August 25, 2025, sets a 60-day compliance window, with checks beginning on October 20.
The increase in PoS agents is due to Nigerians finding long ATM queues inconvenient and preferring quick withdrawals from PoS agents. With the surge in PoS agents, there is a possibility of bad players exploiting the system for personal gain. However, if the mandate is successful, fraud should decline, customers may feel safer using PoS services, and regulators will gain sharper oversight of Nigeria's payments scene.
It's important to note that operators were previously required to route transactions through licensed aggregators and register with the Corporate Affairs Commission. This latest rule is an extension of those requirements, aiming to provide a more secure and transparent PoS ecosystem in Nigeria.
As of March 2025, Nigeria had approximately 5.9 million active PoS terminals out of 8.36 million registered. With the CBN's new measures, the future of the PoS industry in Nigeria looks towards increased security, transparency, and customer trust.
%20terminals%20across%20the%20nation%20must%20be%20equipped%20with%20geolocation%20technology%20within%20the%20next%2060%20days.){kind=link}