The Central Bank of Nigeria (CBN) has announced a significant new directive aimed at enhancing the security and integrity of Point of Sale (PoS) transactions across the country. In a circular released on August 25, 2025, the CBN ordered all licensed operators—including Moniepoint, OPay, PalmPay, and various banks—to geo-tag every PoS terminal within a stringent 60-day timeframe.
This directive mandates that all PoS devices currently in use by agents and merchants must be registered with precise GPS coordinates indicating their operational locations. The CBN’s initiative is designed to combat fraud, eliminate the use of cloned or “ghost” terminals, and facilitate real-time transaction tracking.
Under the new regulations, existing PoS machines are required to be equipped with built-in GPS systems and connected to the National Central Switch, which will monitor their locations through a specialized software development kit (SDK). Merchants will only be permitted to process payments within a 10-meter radius of their registered business address. Any device that fails to comply with the geo-tagging requirement by the deadline will be rendered inoperative.
The directive also applies to newly deployed PoS devices, which must be geo-tagged prior to activation. Payment Terminal Service Providers (PTSPs) and mobile money companies will bear the responsibility of ensuring that all devices within their networks adhere to these regulations.
This move aims to mitigate fraud and unauthorized PoS activities by ensuring that each terminal’s location is both verified and continuously monitored. Compliance checks by the CBN will commence on October 20, 2025, leaving operators with a narrow two-month window to upgrade what could potentially involve over 4 million active terminals nationwide.
The number of PoS devices and agents in Nigeria has surged in recent years. As of 2023, there were approximately 1.5 million PoS agents, equating to one agent for every 80 people. A recent Bloomberg report highlighted that Nigeria has around 1,600 PoS operators per square kilometer, underscoring the rapid expansion of this sector.
The CBN’s latest directive follows previous measures aimed at improving transparency and tracking within the PoS ecosystem, including a requirement for PoS transactions to be routed through licensed Payment Terminal Service Aggregators (PTSA) last year, and a mandate for PoS operators to register their devices with the Corporate Affairs Commission (CAC).
This geo-tagging initiative reflects the CBN’s commitment to strengthening oversight of Nigeria’s burgeoning PoS industry and curbing fraudulent activities.
