“CBN orders geo-tagging of over 4 million PoS terminals to enforce security and reduce fraud,” reflecting the urgent need for regulatory control in Nigeria’s booming payments ecosystem.

A Nationwide Geo-Tagging Call to Action

The Central Bank of Nigeria (CBN) has issued a sweeping directive requiring that all existing and new Point-of-Sale (PoS) terminals be geo-tagged within 60 days. This is a bold move aimed at clamping down on fraud and introducing real-time tracking across digital transactions.(BusinessDay)

According to the directive issued by Rakiya Yusuf, Director of the Payments System Supervision Department, every terminal must have native GPS capabilities, using double-frequency receivers for accurate location data—submitted via a certified Payment Terminal Service Aggregator (PTSA). Transactions must occur within a 10-meter radius of the registered address to remain valid.

Enforcing Compliance in a Rapidly Growing Sector

The directive also applies to new terminals, which must be geo-tagged prior to certification and activation. Any device not compliant by the deadline faces deactivation.

Furthermore, by October 31, 2025, all payment messages must comply with the ISO 20022 global format standard—enhancing data accuracy and transaction security.

Industry Pushback & Practical Concerns

While well-intentioned, the directive raises practical issues. Analysts note that with approximately 4.2 million PoS devices active, at least 77,000 must be geo-tagged daily to meet the deadline—an enormous logistical challenge.

Many older terminals lack built-in GPS and will require retrofitting or replacement. Some operators argue that the 10-meter rule is impracticable for businesses that operate larger premises, such as hotels or supermarkets.