The Central Bank of Nigeria (CBN) has introduced a stringent new policy requiring all Point of Sale (PoS) devices across the country to be geo-tagged with precise GPS coordinates, as part of a broader effort to curb fraud and enhance oversight in Nigeria’s rapidly expanding cashless economy. The directive, outlined in a circular issued on August 25, 2025, targets licensed operators, including major players like Moniepoint, OPay, PalmPay, and commercial banks, giving them a 60-day window to comply.
Under the new regulation, every PoS terminal must be registered with its exact location and equipped with built-in GPS systems linked to the National Central Switch. This system will use a specialized software development kit (SDK) to monitor device locations in real time, restricting transactions to within a 10-meter radius of the merchant’s registered business address. The CBN has warned that any non-compliant devices—those not geo-tagged by the October 20, 2025, deadline—will be deactivated, effectively halting their ability to process payments.
The move is designed to tackle the rising incidence of fraud, including the use of cloned or “ghost” terminals, which have undermined trust in Nigeria’s digital payment ecosystem. By enforcing geo-tagging, the CBN aims to ensure that transactions are traceable and that terminals are operated only by authorized merchants at verified locations. The directive applies to both existing PoS devices and newly deployed ones, with Payment Terminal Service Providers (PTSPs) and mobile money operators tasked with ensuring full compliance across their networks.
Nigeria’s PoS sector has seen explosive growth in recent years, driven by the country’s push toward a cashless economy. As of 2023, the nation had approximately 1.5 million PoS agents, translating to one agent for every 80 citizens, according to industry data. A Bloomberg report further highlighted the density of the sector, noting 1,600 PoS operators per square kilometer. With an estimated 4 million active terminals nationwide, the task of upgrading and geo-tagging these devices within the stipulated timeframe poses a significant logistical challenge for operators.
This latest directive builds on previous CBN efforts to regulate the PoS industry. In 2023, the regulator mandated that all PoS transactions be routed through licensed Payment Terminal Service Aggregators (PTSAs) to improve transparency and tracking. Additionally, PoS operators were required to register their devices with the Corporate Affairs Commission (CAC), further tightening oversight. The geo-tagging policy represents a continuation of these measures, reflecting the CBN’s commitment to safeguarding Nigeria’s financial system as digital transactions surge.
Starting October 20, 2025, the CBN will conduct compliance checks to enforce the new rules. Operators failing to meet the geo-tagging requirement risk having their terminals deactivated, which could disrupt services for millions of merchants and customers. Industry stakeholders are now scrambling to implement the necessary upgrades, with some expressing concerns about the feasibility of retrofitting millions of devices within the tight deadline.
The CBN’s push for geo-tagging underscores its determination to balance innovation with security in Nigeria’s booming PoS industry. As the country continues its transition to a cashless society, these measures aim to foster greater trust and accountability in digital payments, ensuring that the benefits of financial inclusion are not undermined by fraudulent activities.