29/08/2025
The Central Bank of Nigeria (CBN) has issued a new directive that will shut down PoS devices that are used outside of a merchant’s registered address.
In a circular released on August 25, the regulator ordered all licensed operators, including , , , and banks, to geo-tag every terminal within 60 days.
This means that the millions of PoS devices currently used by agents and merchants across Nigeria must now be registered with exact GPS coordinates showing where each device is being used.
According to the , 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.
Under the new rule, all existing PoS machines must be updated with built-in GPS systems and connected to the National Central Switch, which will monitor locations through a special software development kit (SDK).
Merchants will only be allowed to process payments within a 10-metre radius of their registered business address. Any device that is not geo-tagged within the deadline will no longer be allowed to operate.
The directive also applies to newly deployed PoS devices, which must be geo-tagged before activation.
Operators such as Payment Terminal Service Providers ( ) and mobile money companies will be responsible for ensuring that all devices in their network comply.
The directive also aims to reduce fraud and unauthorised PoS activity by ensuring each terminal’s location is verified and continuously monitored.
The CBN will begin compliance checks from October 20, 2025, leaving operators with a tight two-month window to upgrade what could amount to over 4 million active terminals nationwide.
The number of PoS devices and agents has grown steadily over the years. As of 2023, Nigeria had 1.5 million PoS agents, meaning there was one PoS agent for every 80 people. A recent Bloomberg article also reveals that there are 1,600 PoS operators per square kilometre in Nigeria.
The increasing number of PoS agents and terminals is a major reason why the CBN is introducing new directives for their operation.
Last year, the regulator required that PoS transactions be routed through licensed Payment Terminal Service Aggregators (PTSA) to improve tracking and transparency. That same year, PoS operators were mandated to register their devices with the Corporate Affairs Commission (CAC).
The geo-tagging directive signals the CBN’s determination to tighten oversight of Nigeria’s booming PoS industry and clamp down on fraud.
The CBN’s push to geotag 4.2 million PoS terminals in 60 days risks repeating the chaos of the naira redesign, with major implications for operators, merchants, and financial inclusion.
