CBN Mandates Geotagging for 4.2 Million PoS Terminals to Boost Financial Security
Nigeria’s financial ecosystem is poised for a major overhaul following a stringent new directive from the Central Bank of Nigeria (CBN). In a move aimed at bolstering transaction security and combating fraud, the CBN has mandated leading fintech operators and banks, including prominent players like Moniepoint, OPay, and PalmPay, to geotag all their Point of Sale (PoS) terminals. This crucial instruction, issued via a circular dated August 25, 2025, requires the approximately 4.2 million PoS devices operating across the nation to be equipped with precise GPS coordinates and registered within a strict 60-day timeframe. The core of this directive is to ensure that PoS devices can only function within a 10-meter radius of a merchant’s registered business address, with any terminal operating outside this zone facing immediate shutdown.
# Enhancing Transaction Integrity and Combating PoS Fraud
The CBN’s comprehensive initiative is a direct response to growing concerns over financial misconduct within the digital payment landscape. By enforcing the geotagging of every PoS terminal, the regulator aims to effectively curb the proliferation of fraudulent activities, eliminate the use of cloned or “ghost” terminals, and facilitate real-time tracking of transactions. This will significantly enhance the transparency and security of digital payments across Nigeria’s extensive agent banking network. To achieve this, all existing PoS machines must be upgraded to include built-in GPS systems, which will then connect to the National Central Switch. This centralized system will monitor terminal locations through a specialized software development kit (SDK), ensuring strict compliance and enabling swift action against any unregistered or errant devices. This technical integration is critical for creating a more secure and traceable payment environment.
This directive marks a pivotal moment for Nigeria’s evolving digital payment infrastructure. While it introduces new compliance challenges for fintech firms and agents, its long-term benefits in fostering a safer and more transparent financial system are undeniable. The move underscores the CBN’s commitment to protecting consumers and merchants alike, ultimately strengthening confidence in the nation’s burgeoning digital economy and ensuring the integrity of financial transactions from the bustling streets of Lagos to remote rural communities.
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