The Central Bank of Nigeria (CBN) has announced a new directive requiring the geo-tagging of all Point of Sale (PoS) terminals nationwide as part of enhanced measures to improve oversight and reduce fraudulent activities in electronic payments.
Under this new policy, PoS devices will be restricted to the specific locations where they are registered, curtailing their mobility. This change is likely to necessitate adjustments in business operations, particularly for industries such as transportation and logistics that depend on flexible device usage.
In a circular issued on August 25, 2025, Dr. Rakiya O. Yusuf, the Director of Payments System Supervision, instructed 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 complete their transition to the ISO 20022 messaging standard by October 31, 2025.
The circular stipulates that all existing and newly deployed PoS terminals must be equipped with native geolocation services enabled by dual-frequency GPS receivers. These devices must also be registered with a Payment Terminal Service Aggregator (PTSA) using precise latitude and longitude coordinates reflecting the merchants’ business locations.
Additionally, the minimum operating system requirement for all terminals will be Android OS version 10, ensuring compatibility with the National Central Switch’s geolocation monitoring and geofencing system.
The CBN emphasized that terminals not routed to a PTSA will be prohibited from processing transactions. Furthermore, geo-location data must be collected at the start of each transaction and included in the message payload as a mandatory reporting element.
According to the circular, all existing terminals are required to be geo-tagged within 60 days, while new terminals must be geo-tagged prior to certification and activation. The CBN plans to initiate compliance validation exercises starting October 20, ahead of the October 31 deadline, aligning with SWIFT’s global timeline to standardize transaction data and enhance oversight, thereby ensuring that Nigeria’s payment systems adhere to international best practices.
All payment transaction messages, whether domestic or international, must conform to the ISO 20022 format as specified by both CBN and SWIFT. The circular reiterates that all relevant institutions must achieve complete compliance before the approaching deadline.
Licensed operators are reminded that ISO 20022 is the required standard for payment messaging, supporting Nigeria’s objective of ensuring high-quality, standardized data in transactions.
Mandatory data elements such as payer and payee identifiers, merchant and agent identifiers, and transaction metadata must be accurately populated by all institutions. The circular further mandates that all existing and newly deployed payment terminals must have native geolocation services enabled, featuring dual-frequency GPS receivers for reliable geo-location.
All terminals must be registered with a PTSA using accurate coordinates that define the merchant or agent’s place of business or service. Operators, including PTSAs, PTSPs, PTADs, and acquirers, must ensure their PoS terminals and applications are certified by the National Central Switch in line with these standards.
As part of the certification process, all payment terminals must integrate the National Central Switch SDK for geolocation monitoring and geofencing into their PoS applications. A geofence radius of 10 meters beyond the registered business location will be permitted for merchant activities. Geo-location data must be captured at the initiation of transactions and included as a mandatory reporting field. Transactions will not be allowed for terminals not directly routed to a PTSA. Existing terminals must be geo-tagged within 60 days, and all new terminals must be geo-tagged prior to certification and activation, as stated by the CBN.
