In a move to bolster oversight in Nigeria’s expanding digital payments landscape, the Central Bank of Nigeria (CBN) has rolled out stringent requirements for Point of Sale (PoS) terminals, including mandatory location restrictions and hefty fines starting at N5 million for violations. The bank has also granted an extension on certain operational mandates until April 1, 2026, to allow businesses more time to adapt.
The updated directives, outlined in a policy document (PSP/DIR/CON/CWO/001/049) issued on October 6, 2025, and endorsed by Payments System Policy Director Musa I. Jimoh, aim to enhance security and promote equitable access to financial services amid the rapid growth of agent-based transactions.
Key Provisions of the Policy
Effective right away, the rules demand that all PoS machines involved in agent banking incorporate geolocation features to restrict usage to approved sites. Devices detected operating beyond these boundaries will trigger immediate penalties, with principals and super agents responsible for enforcing the safeguards.
Under the framework, primary operators must keep publicly accessible lists of their agents, available both digitally and at physical outlets. Super agents, in turn, are obligated to manage a minimum of 50 sub-agents distributed evenly across the nation’s six regional divisions. Changes to agent sites—such as moves, handovers, or shutdowns—require formal CBN approval and a 30-day advance announcement posted visibly at the site to notify users.
While the core guidelines activate now, the provisions tying agents to specific spots and barring overlapping operations won’t kick in until the 2026 date, as stated in the document: “This circular takes effect from the date of release, while the implementation of agent location and agent exclusivity shall be with effect from April 1, 2026.”
Escalating Penalties and Enforcement
The CBN has set a baseline fine of N5 million for initial breaches, escalating by N300,000 daily until resolved. Persistent violations could rack up costs into the tens of millions, paving the way for escalated measures like removal from approved lists, operational halts, or permanent bans.
Additional sanctions target issues such as delayed reporting, unethical agent behavior, fraudulent activities, unauthorized services, and lapses in record-keeping or financial tracking.
Building on Prior Directives
This latest update builds on a prior August 25, 2025, instruction that required all active PoS units to undergo location verification within two months, with fresh units needing it prior to going live. That order specified adoption of the ISO 20022 standard for transactions and built-in positioning tech to cap device range to roughly 10 meters from designated spots. Starting October 20, 2025, audits will commence, deactivating any units that don’t measure up.
As of March 2025, Nigeria boasts more than 8.3 million PoS registrations, with nearly 6 million in active use—a testament to the sector’s boom but also its vulnerability to misuse.
Industry Impact and Challenges Ahead
The postponement offers some relief to PoS providers, many of whom—predominantly tech startups—had anticipated chaos around the original October 31 cutoff for location setup. Still, the looming 2026 enforcement looms large: unverified devices risk blackout, and firms could face steep financial hits.
For everyday users and vendors, the shift emphasizes stationary service points over portable ones, potentially curbing on-the-go transactions. Compliance will demand upfront spending on software updates, GPS-enabled hardware, ties to CBN monitoring systems like CARDS, and restructuring of agent networks. Experts note that recent models often come GPS-ready, meaning tweaks might avoid full overhauls.
As Nigeria accelerates efforts to weave more citizens into the formal economy, these steps underscore the CBN’s commitment to a safer, more structured PoS environment—though at the cost of added burdens for operators racing to meet the new bar.
