CBN orders geo-tagging of all PoS terminals
Agency Report
As part of efforts to tackle electronic payment fraud and improve oversight of the fast-growing digital payments sector, the Central Bank of Nigeria (CBN) has issued a new directive mandating the geo-tagging of all Point of Sale (PoS) terminals within 60 days.
In a circular dated August 26, 2025, the CBN said that the measure will ensure that all PoS devices are traceable to specific merchant locations.
The apex bank said that terminals operating outside their registered addresses will be flagged for investigation, while non-compliant devices will be deactivated after the October 20, 2025 deadline.
“This initiative is designed to ensure that all PoS terminals are traceable and transactions are secure. Terminals operating outside their registered location will be flagged, and non-compliant devices will be deactivated,” the CBN said.
The directive requires both existing and newly deployed terminals to come with native geolocation features and dual-frequency GPS receivers for real-time monitoring.
The apex regulator said that each device must transmit its coordinates at the start of every transaction, with activity beyond a 10-meter radius of the registered address automatically flagged.
It said that licensed payment operators—including commercial banks and leading fintechs such as Moniepoint, OPay, and PalmPay—are expected to register each terminal with a payment aggregator and provide precise merchant coordinates.
The CBN explained that the move will help eliminate cloned or “ghost” PoS terminals, strengthen consumer protection, and modernise Nigeria’s digital payments infrastructure.
Nigeria’s PoS ecosystem has grown rapidly in recent years, driven by surging fintech adoption and cash scarcity episodes.
The latest directive underscores the regulator’s push to tighten compliance, protect consumers, and safeguard investor confidence in Nigeria’s digital financial services market.
