Nigerian central bank sets 60-day deadline for position-of-sale terminals in Nigeria to implement geo-tagging

In a bid to enhance security, control fraud, and improve regulatory oversight, the Central Bank of Nigeria (CBN) has issued a new mandate for all Point-of-Sale (POS) operators in the country. By October 20, 2025, all POS terminals must be geo-tagged, a move that marks the end of loosely monitored transactions in Nigeria.

This strict regulation, outlined in a CBN circular issued on August 25, 2025, comes as a response to the surge in POS agents across the country. Once rare, these agents are now common on most streets, with the number of POS agents crossing the 1.5 million mark in 2023. As of March 2025, Nigeria had approximately 5.9 million active POS terminals out of 8.36 million registered.

The new rule aims to provide regulators with a sharper oversight of Nigeria's payments scene, increase customer safety using POS services, and decline fraud. To comply with the mandate, POS operators will need to upgrade their devices with built-in GPS systems and connect them to the National Central Switch.

Any POS device used outside its registered location will be blocked. This rule is the strictest move yet in controlling how the industry operates. New POS machines will not be activated unless they are geo-tagged from the start.

Licensed operators such as Moniepoint, OPay, PalmPay, and banks are responsible for ensuring all devices in their networks comply with these rules. Last year, operators were required to route transactions through licensed aggregators and register with the Corporate Affairs Commission.

If the mandate is successful, the golden age of unregulated POS transactions in Nigeria is officially winding down. On average, there is approximately one POS agent for every 80 people in Nigeria. However, with the new regulations, the future of POS transactions in Nigeria promises to be safer, more secure, and more closely monitored.

The CBN's 60-day window for compliance, which commences on October 20, 2025, provides operators with enough time to upgrade their systems and ensure full compliance with the new regulations. With this move, the CBN is sending a clear message: the era of bad players exploiting the POS system is coming to an end.

Nigerian central bank sets 60-day deadline for position-of-sale terminals in Nigeria to implement geo-tagging