The Central Bank of Nigeria (CBN) has rolled out a sweeping set of new regulations targeting Point-of-Sale (PoS) operators, with far-reaching implications for the fintech and payment services sector.
According to a new CBN circular, signed by the Director of Payment Systems Supervision, all PoS operators are now restricted to operating within a 10-metre radius of their registered business address. The directive is aimed at tightening regulatory oversight, curbing fraud, and eliminating the use of cloned or ghost terminals.
Key Highlights of the New CBN Directive
- Geo-Tagging of Terminals:
All existing PoS terminals—currently estimated at over six million nationwide—must be geo-tagged using GPS technology within 60 days. - ISO 20022 Standard Compliance:
All transactions are to migrate to the globally recognised ISO 20022 messaging standard, aligning Nigeria’s payment systems with international best practices. - Compliance Deadline:
The apex bank will commence compliance checks on October 20, 2025, to enforce adherence. - Impact on Operators:
Leading fintechs such as Moniepoint, Opay, PalmPay, and banks will be required to retrofit older PoS devices with GPS capability or procure new devices compatible with the CBN’s directive.
Impact on Small Operators
Analysts warn that smaller PoS agents and roaming operators, who rely on mobility to reach underserved communities, may be severely affected by the new rule. The added cost of upgrading terminals could also strain smaller businesses.
Expert Opinions
Financial experts have praised the move as revolutionary, citing its potential to curb fraud, ransom payments, and illicit financial flows.
“Apart from fraud, data shows that PoS terminals are often exploited by kidnappers to access ransom money. This reform will improve security and strengthen Nigeria’s cashless policy,” said financial analyst Osas Igho.
Soaring PoS Transactions
The new regulations come on the heels of record-breaking PoS usage in Nigeria. According to the Nigeria Inter-Bank Settlement System (NIBSS), the value of PoS transactions surged to ₦18 trillion in 2024, up by 69% from ₦10.7 trillion in 2023. The growth was driven by cash shortages at ATMs and the rapid expansion of fintech-driven financial inclusion.
While compliance will pose significant challenges, the CBN insists that the reform is necessary to boost transparency, strengthen payment security, and align Nigeria’s financial infrastructure with global standards.
