By Nonso Agbodi
The Central Bank of Nigeria (CBN) has issued a sweeping directive mandating that all Point of Sale (PoS) terminals across the country be geo-tagged within the next 60 days. The move, according to the apex bank, is aimed at curbing fraud, eliminating cloned or “ghost” devices, and strengthening oversight of Nigeria’s rapidly growing PoS industry.
In a circular released to operators and signed by the CBN’s Payments System Management Department, the bank explained that all PoS machines currently in circulation must be fitted with GPS technology and registered with their exact coordinates no later than October 20, 2025.
“Any device that fails to comply with this requirement by the deadline will be deactivated from the network,” the CBN warned.
Licensed Operators Affected
The directive affects all licensed PoS operators in Nigeria, including fintechs such as Moniepoint, OPay, PalmPay, as well as commercial banks and Payment Terminal Service Providers (PTSPs).
Under the new rule, existing PoS devices must be updated with built-in GPS modules and integrated with the National Central Switch (NCS), which will monitor their activity in real time through a dedicated software development kit (SDK).
Newly deployed devices, on the other hand, must be geo-tagged before activation and tied to their merchants’ registered business addresses.
Location Restrictions and Compliance Monitoring
The circular further states that PoS devices will only be allowed to process transactions within a 10-metre radius of their registered business location. Any terminal discovered to be operating outside its assigned coordinates will be flagged and shut down immediately.
Operators—including PTSPs, mobile money companies, and banks—will bear full responsibility for ensuring that devices under their networks comply with the directive. Failure to do so could result in regulatory sanctions, suspension, or loss of operating licenses.
Strengthening Oversight of the PoS Industry
The CBN stressed that the new measure is part of broader efforts to tighten financial security and restore trust in the PoS ecosystem, which has witnessed significant growth but also rising cases of fraud and abuse.
“The move is meant to curb fraud, stop the use of cloned or ‘ghost’ terminals, and make it easier to track transactions in real time,” the apex bank explained.
Industry analysts believe the new rule could bring greater transparency and accountability to the sector, though it may also impose additional costs on operators who will need to retrofit or replace existing devices.
What This Means for Merchants and Customers
For merchants, compliance means ensuring that their PoS machines are properly registered and used strictly within their approved business premises. For customers, the CBN insists the directive will lead to safer transactions, reduced fraud risk, and improved reliability of the PoS system.
With Nigeria’s cashless policy deepening and PoS machines serving as a critical lifeline for millions of daily transactions, the new GPS-based oversight marks a decisive step in the central bank’s drive to safeguard the country’s payments infrastructure.
