The Central Bank of Nigeria (CBN) has directed that all Point of Sale (POS) terminals across the country be geo-tagged.
The new rule aims to tighten oversight in the electronic payments sector and curb rising fraud linked to mobile transactions.
According to the CBN, the directive means POS devices will now only be used at their registered business locations.
This restriction could force changes in business models, particularly for operators in transport, logistics, and other mobile service sectors that rely on flexible device movement.
The directive was contained in a circular issued on August 25, 2025, by Dr. Rakiya O. Yusuf, Director of Payments System Supervision.
It was addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Switching Companies, Payment Terminal Service Providers, Super Agents, and other licensed stakeholders.
The CBN circular clearly stated: “All existing and newly deployed payment terminals must have native geolocation services enabled, with Double-Frequency GPS receivers for reliable geo-location service.”
Furthermore, all payment devices must be registered with a Payment Terminal Service Aggregator (PTSA), using accurate latitude and longitude details of merchants’ business locations.
A strict 10-metre geofence radius will be enforced, meaning transactions can only be initiated at approved merchant addresses.
The apex bank warned that “terminals not directly routed to a PTSA are not permitted to transact, while geo-location data must be captured at the initiation of every transaction and included in the message payload as a mandatory reporting field.”
In addition to geo-tagging, the CBN has ordered a full migration to the ISO 20022 messaging standard by October 31, 2025.
This upgrade aligns with global SWIFT standards, ensuring consistency in data quality and improved monitoring of digital transactions.
“All payment transaction messages exchanged domestically or internationally must be formatted in ISO 20022 in line with CBN and SWIFT specifications,” the circular noted.
It further stressed that operators must ensure complete and accurate inclusion of mandatory data such as payer and payee identifiers, agent codes, and transaction metadata.
To support the migration, the minimum Android OS requirement for POS devices is now version 10, ensuring compatibility with the National Central Switch’s geolocation monitoring system.
The CBN has given a 60-day deadline for existing POS devices to be geo-tagged.
New devices must meet this requirement before certification and activation.
The regulator also revealed that compliance checks will begin on October 20, 2025, just ahead of the October 31 migration deadline.
The CBN emphasized that these reforms are not designed to frustrate businesses but to protect the integrity of the financial system.
The directive is expected to reduce fraud, strengthen trust in Nigeria’s fast-growing digital payment ecosystem, and align with international best practices.
Omo this wan go go far ooo. Wetin people dey use maintain again. It is well sha