The Central Bank of Nigeria (CBN) has introduced a sweeping regulatory overhaul of the Point of Sale (PoS) ecosystem, mandating geo-tagging of terminals and setting a minimum penalty of ₦5 million for non-compliance.
The new directive, released on October 6, 2025, aims to reinforce transparency, curb fraud, and enhance supervision within Nigeria’s fast-growing agent banking network.
In the circular (PSP/DIR/CON/CWO/001/049) signed by Musa I. Jimoh, Director of Payments System Policy, the apex bank said the rule “takes effect from the date of release,” though some aspects will be implemented later.
The stricter provisions, agent location and exclusivity, will come into full enforcement on April 1, 2026, providing operators with a longer runway to meet compliance demands.
Under the new regulation, every PoS device used in agent banking must be geo-locked to its registered business location.
Any device detected outside its approved operational radius risks sanctions, as the CBN intensifies efforts to end the mobility loopholes often exploited for fraud and unlicensed operations.
The circular explicitly warns that prolonged breaches could accumulate heavy financial costs for operators, with penalties rising by ₦300,000 per day until compliance is achieved. “Principals and super agents must ensure these controls are in place,” the directive states, underscoring the shared responsibility across the payments ecosystem.
To strengthen accountability, the CBN now requires principals to publish and maintain an up-to-date register of all their agents, accessible online and in physical branches.
Super agents are also mandated to have a minimum of 50 active agents distributed across Nigeria’s six geopolitical zones, ensuring broader coverage and balanced representation.
Any relocation, closure, or transfer of agent premises must be pre-approved in writing, with a mandatory 30-day public notice displayed at the affected location.
This provision aims to enhance consumer protection and operational transparency for PoS users nationwide.
The circular further outlines penalties for late reporting, improper conduct, fraudulent activity, and non-maintenance of agent accounts or records.
These layered measures are part of the CBN’s broader strategy to sanitize the agent banking ecosystem, which has expanded rapidly with fintech growth and the push for cashless transactions.
With over 8.3 million registered PoS terminals in Nigeria and 5.9 million already deployed as of March 2025, the compliance task is enormous.
Analysts say the geo-tagging directive could significantly reshape the PoS landscape, curbing the previously unrestricted movement of terminals between states and markets.
This latest move follows the CBN’s August 25, 2025 circular, which ordered all existing PoS terminals to be geo-tagged within 60 days and mandated that new devices be geo-tagged before activation.
That earlier policy also required ISO 20022 payment messaging and geofencing technology to restrict operational range to roughly 10 metres from the registered address.
The earlier circular warned that terminals failing compliance checks, set to begin October 20, 2025—would be deactivated. Industry reports suggested that fintech firms and PoS operators were already bracing for disruptions and possible revenue declines under the October 31 deadline before the extension to April 2026 was announced.
Outlook
While the extension gives the industry temporary relief, the enforcement threat remains firm. Come April 2026, untagged or non-geo-locked PoS devices could be shut down, and operators may face delisting, suspension, or bl*cklisting alongside the hefty fines.
Smaller operators will likely struggle with the cost of compliance, ranging from firmware upgrades to investment in GPS-enabled devices and integration with CBN platforms such as CARDS. Yet, analysts note that many modern PoS terminals already include geolocation modules, suggesting reconfiguration rather than full replacement may be sufficient for compliance.
The CBN’s renewed emphasis on geo-tagging signals a broader policy shift toward traceability and digital integrity in Nigeria’s payment infrastructure. If effectively enforced, it could enhance consumer confidence, reduce fraud, and further the central bank’s long-term goal of deepening financial inclusion through regulated innovation.
