CBN Mandates Geotagging of 4.2 Million PoS Terminals in Nigeria to Combat Fraud
The Central Bank of Nigeria (CBN) has mandated a significant regulatory shift within the country’s financial technology landscape. Issued on August 25, 2025, the directive compels licensed financial service providers, including prominent fintech firms like Moniepoint, OPay, and PalmPay, along with traditional banks, to geotag all Point of Sale (PoS) terminals within a strict 60-day timeframe. This move aims to enhance transaction security and combat fraudulent activities within the bustling Nigerian digital payment ecosystem.
Geotagging Implementation and Regulatory Goals
The directive stipulates that approximately 4.2 million PoS devices currently operating across Nigeria must be linked to their precise geographic locations. This involves registering each terminal’s GPS coordinates, indicating its exact operational address. The CBN’s rationale for this initiative is multifaceted. Primarily, it seeks to curtail fraudulent practices, including the use of cloned or unauthorized “ghost” terminals. Geotagging will facilitate real-time monitoring of transactions and help identify suspicious activities linked to unregistered devices. To achieve this, existing PoS machines must undergo upgrades to incorporate GPS technology and connect to the National Central Switch. This connection will be facilitated through a special Software Development Kit (SDK), enabling continuous location tracking. Merchants are permitted to process transactions only within a 10-meter radius of their registered business address, thereby further ensuring the integrity of transactions. This represents a significant stride in strengthening Nigeria’s fintech regulations.
Keywords
Related Keywords: CBN, PoS terminals, geotagging, Moniepoint, OPay, PalmPay, Nigeria, financial regulations, 60day deadline, CBN mandate
