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The Central Bank of Nigeria (CBN) has introduced a CBN PoS geo-tagging directive that restricts the use of PoS devices outside registered business addresses. In line with a circular issued on August 25, 2025, the Central Bank of Nigeria instructed all licensed operators. However, this includes Moniepoint, OPay, PalmPay, and commercial banks, with the goal of geo-tagging every PoS terminal within 60 days.
Additionally, this requires that the millions of PoS machines currently in use by agents and merchants across Nigeria be registered with precise GPS coordinates. Notably, the GPS must indicate the exact location of use.
According to the CBN, the CBN PoS geo-tagging directive aims to curb fraud and prevent the use of cloned or ghost terminals. The success of this initiative will enhance the efficiency of transaction tracking. Additionally, the Special Assistant to President Bola Ahmed Tinubu, Dada Olusegun, responded to the news on X. His post reads, “Without the location switched on, all transactions will not be completed. This is a big blow to terror financing, kidnap for ransom and other sundry crimes.”
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Moving forward, every user must upgrade all their PoS devices to GPS-enabled systems. These users must also connect them to the National Central Switch, which will verify locations through a software development kit (SDK). Furthermore, merchants can only process payments within a 10-metre radius of their approved business address. Given the CBN PoS geo-tagging order, the spec bank in Nigeria will deactivate any terminal not geo-tagged before the deadline.
For the machines recently deployed, the new regulation also applies to them. Moreover, users must geo-tag their PoS before activating it for business. Similarly, Payment Terminal Service Providers (PTSPs) and mobile money operators will be responsible for ensuring that every device under their network fully complies with the directive.
CBN PoS Geo-Tagging Directive to Lay Ambush for Fraudulent Activities
The aim is to minimize fraud and unauthorized PoS activities by confirming and constantly monitoring each terminal’s location. Additionally, the CBN announced that compliance checks will commence on October 20, 2025. By implication, operators have a short two-month timeline to upgrade over four million active terminals nationwide.
Rising PoS Numbers in Nigeria
The number of PoS agents has been rising rapidly in recent years. By 2023, Nigeria had about 1.5 million agents, which equates to one PoS operator for every 80 people. A Bloomberg report highlighted that Nigeria records about 1,600 PoS operators per square kilometre, a density unmatched across Africa. This rapid increase is one of the main reasons behind the introduction of the CBN PoS geo-tagging directive.
In 2024, the CBN mandated all PoS transactions to pass through licensed Payment Terminal Service Aggregators (PTSA) to boost transparency. The regulator also directed PoS companies to register their devices with the Corporate Affairs Commission (CAC). The current CBN PoS geo-tagging directive demonstrates the regulator’s commitment to strengthening oversight of Nigeria’s booming PoS industry and cracking down on fraud.
