The Central Bank of Nigeria (CBN) has issued a new directive mandating all Point of Sale (PoS) terminals nationwide to be geo-tagged as part of the attempt to curb fraud, improve supervision, and rationalize electronic payment systems.
In a letter dated 25th August 2025, signed by Dr. Rakiya O. Yusuf, Director, Payments System Supervision, the central bank instructed all Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Mobile Money Operators (MMOs), Switching and Processing Companies, Payment Terminal Service Providers (PTSPs), Payment Solution Service Providers (PSSPs), Super Agents, and other licensed operators to embrace the new requirements.
Under the directive, PoS devices are restricted to being used within their registered business locations, effectively restricting their mobility. The action is expected to impact sectors such as transport and logistics, where device flexibility has been central to operations.
The CBN also ordered that:
Newly installed and fresh PoS terminals must be fitted with native geolocation services by double-frequency GPS receivers.
Devices are registered with a Payment Terminal Service Aggregator (PTSA) according to accurate latitude and longitude coordinates of merchants’ business addresses.
The 10-metre geofence will be enforced, and therefore the transactions within the unregistered space will be excluded.
Android OS version 10 should be utilized as the minimal version in order to offer the compatibility for the National Central Switch’s monitoring and geofencing system.
Geo-location details must be captured at the start of every transaction and included in the message payload as a mandatory reporting field.
The central bank gave operators 60 days to geo-tag already installed terminals, while new ones must be geo-tagged before certification and activation. Compliance validation exercises in relation to start from October 20, 2025, before the final October 31, 2025 deadline.
The directive also requires the complete implementation of the ISO 20022 messaging standard, consistent with global best practices and SWIFT’s global timeline. According to the CBN, domestic and foreign payment messages, starting from this point forward, will be required to include standardized high-quality data fields such as payer/payee identification, merchant details, and transaction information.
“All licensed operators are reminded that ISO 20022 is the global standard for payment messaging, and full compliance is required to upgrade Nigeria’s payments ecosystem,” the circular added.
By taking this step, the CBN aims to strengthen security, improve transparency in electronic payments, and harmonize Nigeria’s financial system with the international standard.
