The Central Bank of Nigeria (CBN) has issued a fresh directive mandating geotagging of all Point-of-Sale (PoS) terminals across the country, a policy that is already stirring mixed reactions among operators, financial service providers, and consumers.
The move, which forms part of the apex bank’s push for stronger oversight of the payments ecosystem, requires all banks, mobile money operators, microfinance institutions, and licensed PoS providers to implement geotagging technology within 60 days.
It also coincides with Nigeria’s migration to the ISO 20022 payment messaging standard—a global benchmark adopted by SWIFT to ensure efficiency, interoperability, and transparency in financial transactions.
According to the directive, the policy is not designed to punish legitimate PoS operators.
Instead, it is primarily targeted at curbing the abuse of PoS machines by fraudsters, kidnappers, money launderers, and other criminal groups who use the devices to move illicit funds across the country.
Geotagging, simply put, is the process of embedding precise geographical coordinates—longitude and latitude—into devices or digital records.
For PoS machines, it means tying each terminal to a registered business address, ensuring that transactions can only occur within a defined physical location.
Industry experts say this technology could help regulators and security agencies pinpoint suspicious transactions, prevent fraud, and increase consumer trust in digital payments.
Obioha Oti, Acting National President of the Association of Mobile Money and Bank Agents, explained that geotagging would work hand-in-hand with geofencing, a system that restricts terminals to a 10-meter radius of their registered address.
“Once a PoS terminal is moved outside the approved location, it will automatically be deactivated,” Oti said during a Channels TV Business Morning appearance.
“For example, if I register a device in Lekki but try to operate it in Surulere, it will shut down immediately until it is returned to its geotagged location.”
This new compliance rule means operators will have to keep their devices fixed at one location, significantly changing the mobile nature of agency banking, which has helped millions of Nigerians access financial services in underserved areas.
While stakeholders agree on the need to strengthen oversight, they are raising concerns about the feasibility of tagging Nigeria’s 10 million PoS devices, half of which are actively in use.
Oti warned that the short 60-day timeline may not be realistic. “At least 40 percent of PoS machines in circulation are not Android-based, meaning they cannot support geotagging or geofencing.
These devices will either need to be replaced or upgraded, which requires huge investments and could disrupt businesses,” he noted.
He added that leading operators like MoniePoint and Opay, who control the majority of PoS terminals, will face the herculean task of upgrading or recalling millions of machines within weeks.
Industry players argue that the directive, if rushed, could increase operational costs for agents, potentially raising service fees for end users.
Small-scale agents, who dominate the informal payments sector, may struggle to purchase new compliant devices.
“Phased implementation is the way forward,” Oti suggested.
“The CBN should provide a longer timeline to avoid destabilising a system that has become a lifeline for cash withdrawals, bill payments, and financial inclusion.”
Some operators fear that temporary device shutdowns during software upgrades could disrupt cash access in rural and peri-urban communities, where PoS terminals often serve as the only banking infrastructure.
Former CBN Governor Sanusi Lamido Sanusi weighed in on the debate, backing the policy as a bold step toward cleaning up Nigeria’s payment system.
In his article, “Courage, CBN, Courage,” Sanusi drew parallels to the 2012 rollout of the cashless policy, which many initially opposed.
“When we started cashless Nigeria, critics said it was impossible because we lacked the infrastructure.
But we implemented it successfully. To drive real reform, the CBN must take on the difficult tasks and confront resistance,” Sanusi wrote.
The new geotagging directive is part of a broader effort by the CBN to modernise Nigeria’s financial infrastructure, enhance transparency, and protect consumers.
While the move could improve security and boost regulatory oversight, industry insiders say success will depend on how well the transition is managed.
If implemented effectively, geotagging could:
Reduce fraud and criminal misuse of PoS machines.
Improve accuracy of financial data and transaction monitoring.
Increase investor and consumer confidence in Nigeria’s digital payments system.
Align Nigeria with global payment security standards.
For now, PoS operators, fintech firms, and banks are watching closely to see whether the CBN will adjust its timelines or provide support mechanisms to ease compliance.
As Nigeria races toward an October 31, 2025 deadline for ISO 20022 compliance, the spotlight will remain on how the apex bank balances regulatory enforcement with business realities in one of Africa’s largest payments ecosystems.