CBN Tightens Control on PoS Terminals with Geo-Tagging Directive

The Central Bank of Nigeria (CBN) has introduced a new policy mandating the geo-tagging of all Point-of-Sale (PoS) terminals nationwide, a measure experts believe will curb fraud, improve transparency, and strengthen Nigeria’s digital payment ecosystem.

The directive requires that each PoS device be linked to its exact physical location, allowing regulators to trace transactions and monitor compliance. According to the CBN, the initiative is part of ongoing efforts to deepen trust in electronic payments and safeguard consumers in the growing cashless economy.

Industry analysts say the measure comes at a critical time. Data from the Nigeria Interbank Settlement System (NIBSS) shows that as of March 2025, there were 8.36 million registered PoS terminals, with 5.90 million active, processing transactions worth ₦10.51 trillion in the first quarter alone a 301.67 per cent increase from Q1 2024.

Financial analyst, Aliyu Illias, described the directive as a game-changer for consumer protection. “Cases of cloned terminals, disputed charges, and unauthorized transactions can now be resolved more quickly through location-based tracking. This not only protects customers but also builds confidence in digital channels,” he said.

Similarly, Managing Director of SD&D Capital Management Limited, Gbolade Idakolo, said the policy will plug revenue leakages, curb money laundering, and improve monitoring. “It supports government’s wider goals of financial inclusion and a stronger digital economy,” he noted.

Under the directive, all PoS terminals must be registered with a Payment Terminal Service Aggregator (PTSA) either NIBSS or Unified Payment Services Limited and tagged with accurate geographic coordinates of the merchant’s business location. Any device moved outside its approved area will be automatically disabled.

Though operators may face higher short-term costs in upgrading infrastructure, analysts argue that the long-term gains including improved efficiency, stronger investor confidence, and reduced fraud outweigh the burden.

With existing measures such as stricter Know-Your-Customer (KYC) rules and enhanced cybersecurity already in place, the geo-tagging requirement marks another step by the CBN to tighten oversight and position Nigeria as a leader in fintech regulation across Africa.