The Central Bank of Nigeria (CBN) has issued a new directive that will shut down PoS devices that are used outside of a merchant’s registered address.
In a circular released on August 25, 2025, the regulator ordered all licensed operators, including Moniepoint, OPay, PalmPay, and banks, to geo-tag every PoS terminal within 60 days.
This means that the millions of PoS devices currently used by agents and merchants across Nigeria must now be registered with exact GPS coordinates showing where each device is being used.
According to the CBN, 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.
Under the new rule, all existing PoS machines must be updated with built-in GPS systems and connected to the National Central Switch, which will monitor locations through a special software development kit (SDK).
Merchants will only be allowed to process payments within a 10-metre radius of their registered business address. Any device that is not geo-tagged within the deadline will no longer be allowed to operate.
The directive also applies to newly deployed PoS devices, which must be geo-tagged before activation.
Operators such as Payment Terminal Service Providers (PTSPs) and mobile money companies will be responsible for ensuring that all devices in their network comply.
The directive also aims to reduce fraud and unauthorised PoS activity by ensuring each terminal’s location is verified and continuously monitored.
The CBN will begin compliance checks from October 20, 2025, leaving operators with a tight two-month window to upgrade what could amount to over 4 million active terminals nationwide.
@ Newsweek
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