According to a recent directive from the Central Bank of Nigeria (CBN), PoS devices used outside a merchant’s registered address will be shut down.
In a circular issued on August 25, 2025, the regulator instructed all licensed operators, including Moniepoint, OPay, PalmPay, and banks, to geo-tag each PoS terminal within 60 days.
The millions of PoS devices that agents and merchants use throughout Nigeria now need to be registered with precise GPS coordinates that indicate their location.
The CBN claims that the action is intended to reduce fraud, prevent the use of “ghost” or cloned terminals, and facilitate real-time transaction tracking.
The new regulation mandates that all current PoS machines be updated with GPS systems and linked to the National Central Switch, which will use a specialised software development kit (SDK) to track locations.
Only businesses within ten meters of their registered business address can accept payments. The operation of any device that is not geo-tagged by the deadline will be terminated.
The directive also applies to newly deployed PoS devices requiring geotagging before activation. Operators, such as mobile money providers and Payment Terminal Service Providers (PTSPs), must guarantee that every device in their network complies.
Two-month deadline to upgrade 4 million active terminals nationwide
The directive also seeks to lessen fraud and unauthorised Pos activity by guaranteeing that each terminal’s location is confirmed and regularly checked.
Operators will have a short two-month window to upgrade what could be more than 4 million active terminals nationwide as the CBN starts compliance checks on October 20, 2025.
Over time, the quantity of PoS agents and devices has increased gradually. Nigeria had 1.5 million PoS agents as of 2023, translating to one PoS agent for every 80 individuals.
According to a recent Bloomberg article, Nigeria has 1,600 PoS operators per square kilometre.
The growing number of these devices is one of the main reasons the CBN is introducing new guidelines for operating PoS agents and terminals.
Last year, the regulator required that PoS transactions be routed through licensed Payment Terminal Service Aggregators (PTSA) to improve tracking and transparency. PoS operators had to register their devices with the Corporate Affairs Commission (CAC) that same year.
The geo-tagging directive demonstrates the CBN’s resolve to strengthen oversight of Nigeria’s thriving PoS industry and combat fraud.