CBN to geo-tag PoS terminals, restrict usage to curb fraud

The Central Bank of Nigeria (CBN) has introduced a major policy shift requiring all Point-of-Sale (PoS) terminals to be geo-tagged and used only at their registered business locations.

In a circular issued on August 25, the apex bank directed payment service providers, including Moniepoint, OPay, PalmPay, banks, and other operators, to implement geo-location features on every PoS device within 60 days.

Under the new rule, merchants can only process transactions within a 10-metre radius of their registered address. Devices not geo-tagged by the deadline will be disabled.

The CBN said the measure is aimed at tackling fraud, eliminating cloned or “ghost” terminals, and improving transaction traceability.

All existing terminals must be upgraded with GPS capability and linked to the National Central Switch for real-time monitoring through a software development kit (SDK). Newly deployed devices must also be geo-tagged before activation.

Payment Terminal Service Providers (PTSPs) and mobile money operators are responsible for ensuring compliance across their networks.

The regulator will begin enforcement from October 20, leaving operators two months to upgrade millions of active devices nationwide.

Nigeria’s PoS ecosystem has expanded rapidly, with over 1.5 million agents as of 2023—roughly one per 80 citizens—and an estimated 1,600 operators per square kilometre. This surge, the CBN noted, has fueled fraud and unregulated operations, prompting tighter controls.