CBN Introduces New POS Regulations to Curb Fraud and Boost Digital Trust

Governor, Central Bank of Nigeria, Dr. Olayemi Cardoso

Firstsitenews-The Central Bank of Nigeria (CBN) has rolled out new rules for point-of-sale (PoS) terminals as part of efforts to enhance digital payment security, curb fraud, and ensure safer transactions nationwide.

The policy, outlined in a circular titled “Migration to ISO 20022 Standard for Payment Messaging and Mandatory Geo-Tagging of Payment Terminals” and signed on August 25, 2025, by Dr. Rakiya Yusuf, Director of Payments System Supervision at the CBN, introduces geo-tagging requirements and stricter transaction routing standards.

Under the new framework, all PoS devices must now be:

Geo-tagged with GPS and registered with a licensed payment aggregator.

Restricted to operations within 10 metres of their registered location.

Linked to one of two aggregators, NIBSS or Unified Payment Services Limited, with all transactions routed through them.

The CBN has given operators a 60-day compliance window, setting October 31, 2025, as the deadline for full migration.

A key aspect of the policy is that PoS devices will automatically transmit their location at the start of every transaction, with any activity outside the approved radius flagged for investigation. Terminals without geo-tagging will be barred from processing payments.

The initiative, according to analysts, is aimed at combating fraud and terrorism financing. “Previously, PoS devices could be relocated for illicit activities, including ransom collections. With GPS tracking and aggregator routing, operators will now be held accountable,” economist Okeke noted.

The move comes as Nigeria witnesses rising fraud cases in digital payments. The Financial Institutions Training Centre’s Fraud and Forgeries Report revealed a 31.12% surge in PoS-related fraud in the first quarter of 2024.

Despite these challenges, PoS terminals remain central to Nigeria’s digital economy. By March 2025, the country recorded 8.36 million registered PoS devices, with 5.9 million actively in use, representing a 119% increase from 2.69 million the previous year, according to the Nigeria Inter-Bank Settlement System (NIBSS).

Governor Olayemi Cardoso has emphasized that the reforms will strengthen consumer protection, enhance traceability, and expand financial inclusion.