The Central Bank of Nigeria (CBN) has issued a comprehensive directive that will significantly impact the operations of Point-of-Sale (PoS) agents nationwide.
Under new regulations, PoS terminals will be confined to operate only within a 10-metre radius of their registered business address, which is a move aimed squarely at tightening regulatory control and reducing fraud.
The new circular, signed by Rakiya Yusuf, director of the CBN’s Payments System Supervision Department, imposes strict requirements that state that all existing PoS terminals, estimated at around 6 million devices, must be geo-tagged using GPS and integrated with ISO 20022 messaging standards within 60 days.
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Compliance checks are slated to begin on October 20, 2025. The new directive requires all payment transactions to migrate to the globally recognised ISO 20022 messaging standard, aligning Nigeria’s digital payments infrastructure with international best practices.
The geofencing rule will restrict the mobility of PoS agents, effectively eliminating the use of cloned or ‘ghost’ terminals, and enhancing the traceability of payment activities.
For operators like Moniepoint, OPay, PalmPay, and various banks and PTSPs, the mandate introduces significant cost pressures from acquiring GPS-enabled devices or retrofitting older units, to upgrading software and processes for ISO 20022 compatibility.
Smaller operators and roaming PoS agents who rely on mobility to serve dispersed communities may find their business models upended. Meeting compliance while maintaining service continuity poses a substantial challenge.
