The Central Bank of Nigeria (CBN) has introduced new rules to curb fraud in point-of-sale (PoS) transactions, making it compulsory for all payment terminals to be geo-tagged and linked to global payment standards.
The reforms, announced in a circular issued on 25 August 2025, are designed to make every digital transaction traceable and secure. The directive, signed by Dr Rakiya Yusuf, Director of the Payments System Supervision Department, sets 31 October 2025 as the compliance deadline.
Under the new rules, every PoS machine must capture and transmit its exact location at the start of a transaction. Devices that are moved outside a 10-metre radius of their registered address will be flagged, and unregistered machines will no longer be allowed to process payments.
“All PoS terminals must now be linked to licensed aggregators, either NIBSS or Unified Payment Services Limited, to ensure proper monitoring,” the circular stated.
Experts say the move will help fight fraudsters who exploit PoS terminals for scams, ransom payments, and other illegal activities. The Financial Institutions Training Centre earlier reported a 31 per cent rise in PoS fraud cases in early 2024.
In addition to GPS tracking, the CBN is also adopting ISO 20022 — a global payment messaging standard developed by SWIFT. This will unify transaction data, improve accuracy, and allow Nigerian payments to connect seamlessly with international systems.
CBN Governor Olayemi Cardoso said the reforms would not only protect consumers but also strengthen trust in digital payments. “Nigeria’s fintech ecosystem is one of the most dynamic in the world. By enforcing global standards, we are ensuring transparency, accountability, and investor confidence,” he said.
For consumers, the bank has also introduced a Unified Complaints Tracking System through the USSD code *959#, allowing users to verify payment operators and report unresolved disputes.
Since their introduction in 2013, PoS machines have transformed commerce in Nigeria. By March 2025, there were 8.36 million registered PoS devices, with 5.9 million actively in use — a sharp rise from just 2.69 million the year before.
Analysts say the new rules may increase operating costs for merchants but will ultimately boost confidence in digital transactions, especially as more Nigerians shift from cash to electronic payments.
