The Central Bank of Nigeria (CBN) has announced that all Point of Sale (PoS) devices must now operate strictly within a 10-metre radius of their registered business address.
This new regulation, unveiled in a recent circular, means agents are no longer permitted to use terminals beyond this defined perimeter.
The directive, signed by Rakiya Yusuf, director of the payments supervision department, mandates that geolocation data be embedded in every transaction message. Roughly 6 million existing terminals managed by operators like Moniepoint, Opay, and Palmpay must be geotagged to comply with the rule within 60 days. Enforcement checks will commence on October 20, 2025.
Additionally, the circular requires adoption of the ISO 20022 payment messaging standard and insists all devices have GPS-enabled location tracking activated.
An insider familiar with the rollout, who requested anonymity, explained that this policy aims to prevent fraudulent activity, restrict unauthorized terminal relocation, and improve Nigeria’s standing with the Financial Action Task Force (FATF), which placed the country on its grey list in 2023 due to anti-money laundering gaps.
Since their introduction in 2013, PoS machines have become crucial for everyday cash access across Nigeria, with over 1,600 operators per square kilometre in some areas. As of March 2025, there were 8.36 million registered terminals, with 5.9 million actively deployed. The first quarter of 2025 witnessed transactions soaring to ₦10.51 trillion, a staggering 301% increase compared to the same period in 2024. However, this surge has heightened risks, including agents unwittingly facilitating scams or illegal uses. The regulator believes geofencing is a vital tool to mitigate such issues.
In 2024, there was a report that the Nigerian Interbank Settlement System (NIBSS) had been tasked with developing a geofencing framework to limit terminal mobility. According to the latest guidelines, NIBSS will have the authority to deactivate devices that are found outside their certified locations.
All payment terminals must register with a Payment Terminal Service Aggregator, either NIBSS or Unified Payment Services Limited, providing precise latitude and longitude details along with operational status. Equipment not routed through these aggregators will be disqualified from processing transactions. All applications and devices require certification from the National Central Switch (NCS).
Not all stakeholders are convinced this plan is feasible. A payments provider expressed concern over the operational challenges, stating that retrofitting millions of terminals for geolocation tracking demands a workforce and resources Nigeria currently lacks. He said that at least 60,000 terminals will need tagging daily, a daunting task given current manpower shortages.
The expenses related to hardware upgrades and certifications could also financially strain smaller payment service providers, risking their survival. The rigid 10-metre limitation, the operator argued, is impractical for many businesses like supermarkets, hotels, malls, or fuel stations, where transactions often occur over broader areas.
Oluwagunwa Ibirogba, chairman of the Lagos chapter for the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), acknowledges the importance of combating fraud but advocates for a more flexible framework. Oluwagunwa stated that there are better ways to map and monitor terminals by leveraging existing networks. According to him, trust built by agents beyond a tiny radius is essential to customer relationships, and overly strict rules could undermine that.
These updated guidelines from the CBN shows Nigeria’s dedication to building a more secure and trustworthy payment system that keeps fraud at bay and meets global best practices.
