Matilda Omonaiye/
The Central Bank of Nigeria (CBN) has issued a directive mandating the geo-tagging of all Point-of-Sale (PoS) terminals within 60 days, in a decisive push to curb electronic payment fraud and strengthen oversight of the country’s fast-growing digital payments sector.
In a circular dated August 26, 2025, the apex bank said the measure would ensure that every PoS device is traceable to its registered merchant location. Terminals operating outside approved addresses will be flagged for investigation, while non-compliant devices face deactivation after the October 20 deadline.
“This initiative is designed to ensure that all PoS terminals are traceable and transactions remain secure. Devices operating outside their registered locations will be flagged, and non-compliant ones will be deactivated,” the CBN stated.
Under the new policy, both existing and newly deployed PoS devices must come equipped with native geolocation features and dual-frequency GPS receivers to enable real-time monitoring. Each terminal is required to transmit its exact coordinates at the start of every transaction. Any activity recorded beyond a 10-meter radius of the registered address will trigger automatic red-flagging.
Licensed payment operators—including commercial banks and fintech leaders such as Moniepoint, OPay, and PalmPay—are directed to register each terminal with a payment aggregator and provide precise merchant coordinates. The CBN explained that the policy is aimed at eliminating cloned or “ghost” terminals, bolstering consumer protection, and modernising Nigeria’s digital payments infrastructure.
Nigeria’s PoS ecosystem has expanded rapidly in recent years, spurred by fintech adoption and cash-scarcity episodes. The new directive underscores the regulator’s resolve to tighten compliance, safeguard consumers, and reinforce investor confidence in the nation’s digital financial services market.
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