The Central Bank of Nigeria (CBN) has rolled out new regulatory measures targeting point-of-sale (PoS) terminals, in a move aimed at curbing fraud, improving consumer protection, and aligning Nigeria’s fast-growing digital payments system with international standards.
The policy, contained in a circular titled “Migration to ISO 20022 Standard for Payment Messaging and Mandatory Geo-Tagging of Payment Terminals” issued on August 25, 2025, introduces compulsory geo-tagging of PoS devices and mandates migration to the ISO 20022 global payment messaging protocol.
Licensed payment aggregators such as the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payments Services Limited will serve as the central gateways for all transactions.
A core part of the new rules requires every PoS device in Nigeria to be geo-tagged using GPS technology. The machines will now be restricted to operate only within a 10-metre radius of their registered location.
Any terminal that processes a transaction outside this radius will be flagged, and devices that are not geo-tagged will no longer be permitted to handle payments.
According to the CBN, this policy is part of a counter-terrorism and anti-fraud initiative designed to make digital transactions fully traceable.
Fraudulent activities, including cases where criminals used mobile PoS terminals to collect ransom or defraud unsuspecting customers, are expected to reduce significantly under this system.
The urgency of these reforms is underscored by the Financial Institutions Training Centre (FITC) report, which revealed a 31.12 percent increase in PoS-related fraud cases in the first quarter of 2024 alone.
“Previously, PoS devices could be moved between cities or used in hidden operations without traceability. With GPS geo-tagging, accountability becomes easier, and fraud will be much harder to conceal,” economist Chinedu Okeke explained.
Beyond geo-tagging, the CBN is mandating the adoption of ISO 20022 standards for all domestic and international payment transactions by October 31, 2025.
This globally recognized messaging protocol, developed by SWIFT, enhances the quality of financial data, ensures consistency, and enables interoperability between Nigerian and international payment systems.
By requiring all PoS devices to run on Android version 10 or higher, the CBN also seeks to strengthen integration with the National Central Switch, which supports geofencing and secure data transfer.
Financial analysts note that ISO 20022 adoption positions Nigeria’s payment ecosystem for global relevance.
It reduces reconciliation errors, improves fraud detection, and makes the country’s fintech sector more attractive to foreign investors who demand adherence to global best practices
To complement the reforms, the CBN has introduced the Unified Complaints Tracking System (UCTS), accessible via the USSD code *959#.
Through this platform, consumers can confirm licensed operators, lodge complaints, and monitor the resolution of disputes in real-time.
Speaking at the recent CBN Fair in Lagos, Acting Director of Corporate Communications, Hakama Sidi Ali, stressed that the initiative goes beyond regulation.
“Our goal is to sensitize the public on how these policies will safeguard livelihoods, protect consumer funds, and build trust in the Nigerian financial system,” she said.
Since their introduction in 2013, PoS terminals have grown into a key driver of Nigeria’s cashless economy.
Data from NIBSS shows that by March 2025, the country had 8.36 million registered PoS terminals, with 5.9 million actively in use—a staggering 119 percent increase from the previous year.
PoS transactions have also surged in value. In the first quarter of 2025 alone, Nigerians conducted transactions worth ₦10.51 trillion via PoS terminals, more than triple the ₦2.62 trillion recorded during the same period in 2024.
For merchants, PoS devices have become indispensable.
Street vendors, market traders, and service providers now rely on them to reduce cash-handling risks and speed up sales.
Rural communities have also benefitted, as PoS agents serve as alternative financial service providers for people excluded from the formal banking system
While many stakeholders have welcomed the reforms, concerns remain about implementation costs and possible service disruptions.
Development economist Dr. Aliyu Ilias, who once lost ₦150,000 to PoS fraud, praised the reforms but cautioned that transaction charges could rise.
“These measures will protect consumers like me, but banks and operators may push the cost of compliance to customers,” he said.
For PoS operators, the reforms present both challenges and opportunities.
Tinuke Adebola, an aggregator in Lagos, noted that PoS adoption has already reduced reliance on costly ATM operations.
“Daily earnings from PoS vary widely, but compliance with geo-tagging may add to operational expenses for small agents,” she explained.
Governor Olayemi Cardoso has positioned these reforms as part of a wider financial inclusion drive, aiming to bring 80 percent of Nigerian adults into the formal financial system by 2026.
Through partnerships with banks, fintechs, and agent networks, the CBN hopes to ensure digital payment services remain safe, affordable, and accessible nationwide.
“Nigeria’s dynamic fintech ecosystem has already placed us ahead of many economies,” Cardoso said.
“What we are doing now is reinforcing transparency and accountability to make digital payments safer for everyone.”
As Nigeria’s PoS ecosystem adjusts to these new regulations, analysts predict the reforms could serve as a model for other African economies.
By combining geo-tagging with international payment standards, the CBN is setting the stage for a more secure, globally recognized digital financial landscape.