The move, announced on Tuesday, aims to enhance transparency, curb fraud, and strengthen the monitoring of electronic transactions in Nigeria’s rapidly growing cashless economy.

According to the CBN, geo-tagging will enable real-time tracking of PoS terminal locations, ensuring they are used only at registered business premises. 

This is expected to address widespread issues such as unauthorized terminal mobility, which has been linked to fraudulent activities, including money laundering and unregulated cash withdrawals.

“This directive is a critical step toward securing Nigeria’s financial ecosystem,” said CBN Governor, Olayemi Cardoso, in a press briefing. 

“Geo-tagging will provide us with accurate data on transaction locations, improve regulatory oversight, and protect consumers from illicit practices.”

The directive has sparked mixed reactions. Financial technology experts and banking officials have welcomed the move, citing its potential to boost accountability. 

The CBN has assured stakeholders that it will collaborate with banks and payment service providers to facilitate a smooth transition. 

The apex bank also plans to roll out awareness campaigns and technical support for operators in rural areas.

Non-compliance with the directive will attract penalties, including fines and potential suspension of operating licenses, the CBN warned. 

The bank has urged all PoS operators to contact their acquiring banks or licensed payment terminal providers to begin the geo-tagging process immediately.