The directive, which affects licensed operators including Moniepoint, OPay, PalmPay, and commercial banks, requires that every PoS device currently in circulation be registered with its exact GPS coordinates. New PoS devices must also be geo-tagged before activation.
According to the apex bank, any device that fails to meet the requirement by the October 20, 2025 compliance deadline will be deactivated.
“The move is meant to curb fraud, stop the use of cloned or ‘ghost’ terminals, and make it easier to track transactions in real time,” the CBN stated in a circular released to operators.
Unscrupulous individuals have been known to exploit PoS services to defraud customers and, in some cases, to collect ransom payments. The new directive is aimed at blocking such avenues by ensuring that every terminal is tied to a verified location.
CBN leverages Customers’ Bill of Rights to improve banking service quality
Under the new rule, all existing PoS devices must be updated with built-in GPS systems and linked to the National Central Switch, which will monitor their usage through a special software development kit (SDK). Merchants will only be able to process payments within a 10-metre radius of their registered business addresses.
The CBN warned that any device found operating outside of its registered location will be shut down. Operators such as Payment Terminal Service Providers (PTSPs) and mobile money companies will be held accountable for ensuring compliance across their networks.
“The increasing number of PoS agents and terminals is a major reason why the CBN is introducing new directives for their operation,” the regulator explained.
The latest directive follows previous regulatory measures. In 2024, the CBN mandated that all PoS transactions be routed through licensed Payment Terminal Service Aggregators (PTSA) to improve transparency. Operators were also required to register their devices with the Corporate Affairs Commission (CAC) to tighten oversight.
The Nation
According to the apex bank, any device that fails to meet the requirement by the October 20, 2025 compliance deadline will be deactivated.
“The move is meant to curb fraud, stop the use of cloned or ‘ghost’ terminals, and make it easier to track transactions in real time,” the CBN stated in a circular released to operators.
Unscrupulous individuals have been known to exploit PoS services to defraud customers and, in some cases, to collect ransom payments. The new directive is aimed at blocking such avenues by ensuring that every terminal is tied to a verified location.
CBN leverages Customers’ Bill of Rights to improve banking service quality
Under the new rule, all existing PoS devices must be updated with built-in GPS systems and linked to the National Central Switch, which will monitor their usage through a special software development kit (SDK). Merchants will only be able to process payments within a 10-metre radius of their registered business addresses.
The CBN warned that any device found operating outside of its registered location will be shut down. Operators such as Payment Terminal Service Providers (PTSPs) and mobile money companies will be held accountable for ensuring compliance across their networks.
“The increasing number of PoS agents and terminals is a major reason why the CBN is introducing new directives for their operation,” the regulator explained.
The latest directive follows previous regulatory measures. In 2024, the CBN mandated that all PoS transactions be routed through licensed Payment Terminal Service Aggregators (PTSA) to improve transparency. Operators were also required to register their devices with the Corporate Affairs Commission (CAC) to tighten oversight.
The Nation
it will reduce fraud
ReplyDeleteVery very good
ReplyDeleteVery good 👍🏻
ReplyDeleteThis is long over due.
ReplyDeleteVery good ideas.
ReplyDeleteGood move. Great policy
ReplyDelete