CBN Moves to Track PoS Terminals With Mandatory Geo-Tagging
The Central Bank of Nigeria (CBN) has directed that all Point-of-Sale (PoS) terminals in the country must be geo-tagged within the next 60 days, in a move aimed at tightening oversight of electronic payments and curbing fraud.
The directive, issued in a circular dated August 26, requires that every PoS device be registered with precise merchant coordinates and fitted with geolocation features capable of transmitting real-time data. According to the CBN, transactions conducted outside a 10-metre radius of the registered business address will be automatically flagged.
Under the new guidelines, all new PoS machines must come equipped with native geo-location services and double-frequency GPS receivers, while existing devices are expected to be upgraded to meet the requirement. Non-compliant terminals risk deactivation after October 20.
“The measure is designed to enhance traceability in the payment system, strengthen consumer protection, and eliminate ghost or cloned terminals,” the apex bank stated.
The directive applies to commercial banks, licensed operators, and fintech firms such as Moniepoint, OPay, and PalmPay, which are expected to ensure that their deployed terminals comply with the geo-tagging requirement.
Industry watchers say the move could transform the monitoring of digital transactions, giving regulators stronger tools to combat fraud and improve transparency in Nigeria’s fast-growing electronic payments sector.
