CBN Orders Geo-Tagging of All PoS Terminals in Nigeria
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CBN Orders Geo-Tagging of All PoS Terminals in Nigeria |
The Central Bank of Nigeria mandates geo-tagging of all PoS terminals to curb fraud, improve oversight, and secure digital payments nationwide by October 2025.
The Central Bank of Nigeria (CBN) has issued a landmark directive requiring all Point of Sale (PoS) terminals in Nigeria to be geo-tagged within 60 days. This initiative aims to curb fraud, enhance oversight, and ensure that digital financial transactions are fully traceable. With the rapid expansion of cashless payments, the CBN’s new measure is a crucial step toward safeguarding both merchants and consumers.
Why Geo-Tagging PoS Terminals is Important
Geo-tagging enables authorities to track the precise location of PoS devices, preventing fraud and enhancing transaction security. According to the CBN statement dated August 26, 2025:
- Terminals operating outside their registered location will be automatically flagged.
- Non-compliant devices will be deactivated to protect consumers.
- Real-time monitoring will help eliminate ghost or cloned terminals, a persistent issue in digital payments.
This measure is part of the CBN’s broader plan to modernize Nigeria’s payment ecosystem, improve transparency, and build trust in the digital financial infrastructure.
Technical Requirements for PoS Terminals
All existing and newly deployed PoS devices must comply with specific technical standards:
- Native geolocation features for accurate tracking.
- Double-frequency GPS receivers to prevent location spoofing.
- Each device must capture and transmit its location at the start of every transaction.
- Transactions beyond a 10-meter radius from the registered merchant address will be automatically flagged.
Merchants who fail to meet the October 20, 2025, deadline risk having their PoS terminals disabled.
Role of Banks and Fintech Operators
Licensed operators, including major banks and fintech companies, are expected to implement these requirements efficiently:
- Register all PoS terminals with a payment aggregator.
- Provide precise merchant coordinates for each device.
- Ensure continuous monitoring of PoS activity to comply with CBN guidelines.
Key operators like Moniepoint, OPay, and PalmPay are leading the implementation, guaranteeing that merchants and consumers benefit from secure and traceable transactions.
Benefits of Geo-Tagging for Nigeria’s Payment System
Implementing geo-tagged PoS terminals will deliver several advantages:
- Enhanced security: Reduces the risk of fraud and cloned devices.
- Consumer protection: Transactions are more transparent and traceable.
- Improved regulatory oversight: Authorities can monitor PoS distribution and activity in real time.
- Modernization of payments: Helps Nigeria’s financial system align with global best practices in digital payments.
The CBN’s geo-tagging directive marks a significant step toward securing Nigeria’s digital payment ecosystem. Merchants and operators must comply with the October 2025 deadline to ensure their PoS terminals remain operational. This initiative not only safeguards financial transactions but also builds trust in the rapidly growing cashless economy.
Merchants are encouraged to register their devices promptly and ensure accurate geolocation settings. With proactive compliance, stakeholders can enjoy safer, more transparent, and fully traceable digital payment transactions across Nigeria.
