CBN’s Dual PoS Connectivity Directive and Its Impact on Nigeria’s Payment Ecosystem
The Central Bank of Nigeria has issued a decisive policy directive mandating all banks, financial institutions, acquirers, and payment service providers to adopt CBN’s dual PoS connectivity within the next 30 days.
The new requirement, which was communicated through a circular dated December 11, 2025, represents one of the apex bank’s most assertive steps in recent years to stabilise the nation’s electronic payment system and curb persistent PoS transaction failures.
Signed by the Director of Payments System Supervision, Rakiya Yusuf, the circular updates an earlier regulatory framework introduced in September 2024.
The Central Bank noted that despite previous measures, the industry continues to battle widespread transaction downtime, largely caused by operators’ reliance on single-channel connectivity.
The new mandate aims to dismantle that risk by enforcing operational redundancy across the entire payment infrastructure.
Under the circular, all acquirers, processors, and payment terminal service providers must now maintain simultaneous and active connectivity with both the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL).
This dual-routing approach, the CBN explained, will serve as a powerful safeguard against service paralysis whenever one aggregator experiences disruptions.
Industry analysts note that the directive reinforces the regulator’s intention to strengthen resilience in Nigeria’s payment architecture at a time when digital transactions have significantly outpaced physical cash usage.
Strengthening Transaction Stability Through Redundancy
In its communication, the apex bank emphasised that CBN’s dual PoS connectivity policy is built around reducing systemic dependence on any single service provider.
The redundancy mechanism is expected to allow PoS terminals to automatically switch between NIBSS and UPSL during outages, minimising failed transactions and shielding merchants from business disruptions.
The CBN also introduced a mandatory schedule for redundancy and failover tests.
Under the new rule, payment processors must collaborate with both NIBSS and UPSL to run periodic live simulations aimed at verifying whether their systems can sustain uninterrupted operations.
The results of these tests will form part of the CBN’s supervisory review and will influence compliance ratings for regulated institutions.
Payment experts say this marks a significant shift from advisory supervision to enforcement-driven oversight, signalling the bank’s increasing intolerance for service failures that inconvenience customers and undermine trust in digital payments.
Incident Reporting and Accountability Framework Tightened
Another key component of CBN’s dual PoS connectivity directive is the overhaul of incident reporting obligations.
The circular requires NIBSS and UPSL to immediately notify banks and acquirers of any downtime on their networks.
Both organisations must also submit a detailed incident report to the Payments System Supervision Department within 24 hours.
Each report must outline the origin and scope of the disruption, the scale of customer impact, and the corrective steps taken to restore service.
The CBN said the tightened reporting structure is intended to improve transparency, promote operational discipline, and ensure that lapses are addressed quickly to prevent prolonged outages.
The regulator stressed that seamless electronic payments are critical to sustaining Nigeria’s transition toward a modernised, technology-driven financial system.
This becomes especially relevant during periods of heavy transaction volumes such as festive seasons, when PoS transactions typically surge.
Broader Regulatory Actions Targeting PoS and Fintech Compliance
The directive comes less than a week after the Corporate Affairs Commission (CAC) ordered all unregistered PoS operators to register formally or face shutdown.
The Commission also issued warnings to fintech companies over rising concerns about fraud-enabling practices and identity verification lapses.
Together, these two actions signal a coordinated regulatory push aimed at sanitising the PoS ecosystem, which has witnessed explosive growth in recent years but has also struggled with issues of fraud, unlicensed agents, inconsistent service quality, and infrastructural strain.
Stakeholders note that the CBN’s move will have sector-wide implications.
Banks and fintechs will need to invest in system upgrades, reconfigure their connectivity frameworks, and adjust internal reporting processes to align with the regulator’s updated compliance threshold.
Operators React to Compliance Requirements
Initial industry reactions indicate that while the enforced redundancy may raise operational costs, most operators recognise the long-term benefits.
PoS agents interviewed across Lagos, Abuja, and Port Harcourt expressed optimism that CBN’s dual PoS connectivity would reduce failed transactions, which often lead to customer disputes, financial reversals, and delayed settlements.
Merchants said improved reliability will help them maintain business continuity, especially during peak trading hours.
However, some fintech operators cautioned that the success of the initiative depends on the speed and efficiency with which NIBSS and UPSL strengthen their infrastructures to support dual traffic without latency.
A Turning Point for Nigeria’s Cashless Vision
With the new directive, the CBN appears determined to accelerate Nigeria’s journey toward a more dependable, transparent, and resilient digital payment environment.
By enforcing dual connectivity, tightening reporting structures, and holding aggregators accountable for network performance, the regulator is betting on a future where PoS terminals no longer struggle with routine outages.
For millions of Nigerians who rely on PoS transactions daily, the directive represents a long-overdue intervention that could significantly improve user experience and rebuild confidence in cashless operations.
