CBN Orders Geo-Tagging Of PoS Terminals In Nigeria - What You Need To Know

CBN Mandates Geo-Tagging of PoS Terminals Nationwide to Tackle Fraud — All Devices Must Be Mapped Within 60 Days

In a decisive move to curb rising fraud in Nigeria's digital payments space, the Central Bank of Nigeria (CBN) has ordered that all Point-of-Sale (PoS) terminals across the country be geo-tagged within 60 days.

According to a circular dated August 25, 2025, issued by Dr. Rakiya O. Yusuf, Director of Payments System Supervision, the directive applies to both existing and new PoS terminals deployed by licensed operators — including banks, fintech firms like Moniepoint, OPay, and PalmPay, as well as Payment Terminal Service Providers (PTSPs) and Payment Solution Service Providers (PSSPs).

Key Highlights of the Directive

Geo-tagging requirement: Every PoS terminal must capture and transmit its precise location using double-frequency GPS before each transaction. Devices operating beyond a 10-meter radius of their registered merchant address will be automatically flagged.

Deactivation of non-compliant devices: Terminals not geo-tagged by the October 20, 2025 cut-off will be deactivated, effectively stopping them from processing payments.

Technical standards: All PoS terminals must be registered with a Payment Terminal Service Aggregator (PTSA) and run Android OS version 10 or higher to be compatible with the National Central Switch’s geolocation and geofencing SDK.

ISO 20022 compliance: The migration to the ISO 20022 messaging standard is mandatory by October 31, 2025, ensuring all transaction messages domestically and internationally adhere to global best practices.

Why This Matters

The rapid expansion of PoS terminals has been instrumental in driving financial inclusion, especially amid diminishing ATM access and bank branches. However, it has also created security vulnerabilities. Reports have shown cloned or "ghost" terminals being used in scams, including kidnapping-related ransom transfers via PoS networks.

By geo-tagging every terminal, the CBN aims to:

i. Guard against fraud and unauthorized usage.

ii. Facilitate real-time monitoring and transaction traceability.

iii. Align payment infrastructure with international standards for enhanced consumer protection and regulatory oversight.

Financial analyst Osas Igho commented: “This move will boost security and improve the cashless policy of the Nigerian government.”