By David Akinmola
The Central Bank of Nigeria (CBN) has intensified its oversight of the nation’s fast-growing Point-of-Sale (PoS) ecosystem, unveiling stiffer regulatory measures, including a mandatory geo-tagging policy and a minimum penalty of ₦5 million for operators who fail to comply.
The new directive, contained in a circular dated October 6, 2025 (Ref: PSP/DIR/CON/CWO/001/049) and signed by Musa I. Jimoh, Director, Payments System Policy, mandates all PoS terminals to be geo-locked to their registered business locations — a move aimed at curbing fraud, improving data integrity, and ensuring proper agent identification across the country.
Under the revised guidelines, defaulting PoS operators and their principals face an additional ₦300,000 daily fine for every day of continued non-compliance.
While the regulation takes immediate effect, the apex bank has set April 1, 2026, as the enforcement date for stricter provisions, including agent location and exclusivity requirements.
“This circular takes effect from the date of release, while the implementation of agent location and agent exclusivity shall be with effect from April 1, 2026,” the CBN stated.
Tightened operational control
The new framework compels principals and super agents to ensure all PoS terminals are tied to fixed business premises and not used for mobile or street-level transactions outside approved coordinates. Any device operating outside its registered zone will attract regulatory sanctions.
In addition, agent banks are required to maintain a publicly accessible register of all approved agents, both online and at physical branches, while super agents must have at least 50 agents spread across Nigeria’s six geopolitical zones.
Any relocation, closure, or transfer of agent premises must be pre-approved in writing by the regulator, with a 30-day notice visibly displayed to customers before such changes take effect.
Industry observers say the measures reflect the CBN’s growing determination to sanitize the PoS space, which has faced persistent challenges such as transaction fraud, agent duplication, and weak KYC compliance.
Massive compliance challenge ahead
The scope of the regulation poses a formidable task for operators. According to industry data, Nigeria had over 8.3 million registered PoS terminals as of March 2025, with about 5.9 million actively deployed.
Fintechs, super agents, and payment service providers are expected to integrate their systems with the CBN’s regulatory monitoring platform and ensure devices comply with ISO 20022 messaging and geofencing standards, restricting movement to about 10 metres from the registered business address.
Analysts note that while newer PoS devices already have GPS-enabled modules, others may require firmware upgrades or total replacement — a costly process that could affect small operators the most.
Part of broader digital reforms
The geo-tagging directive builds on an earlier CBN circular of August 25, 2025, which gave PoS issuers 60 days to geo-tag all devices or risk deactivation. That circular also warned that compliance checks would commence on October 20, 2025.
With the latest guideline, the CBN appears determined to impose order on Nigeria’s PoS landscape — a market valued at over ₦10 trillion in annual transaction volume and central to the country’s financial inclusion drive.
Industry experts say the extension of the enforcement deadline to April 2026 gives operators breathing space but also signals the apex bank’s zero-tolerance stance toward regulatory breaches.
For merchants and consumers, however, the move could mean a shift away from mobile PoS flexibility toward fixed-location transactions a change that may redefine the convenience culture that helped drive the boom in agent banking.“This is a clear signal that the CBN wants a cleaner, traceable, and compliant PoS environment,” said one fintech compliance officer. “The days of roaming PoS terminals and informal agent operations are coming to an end.”
