The Central Bank of Nigeria (CBN) has set an October 31, 2025, deadline for all payment ecosystem participants, including Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Payment Service Providers, to adopt the ISO 20022 messaging standard and implement mandatory geo-tagging for payment terminals. The directive, outlined in a circular dated August 25, 2025, signed by Dr. Rakiya O. Yusuf, Director of Payments System Supervision, was published on the CBN’s website to align Nigeria’s financial system with global benchmarks.
ISO 20022, a data-rich global standard for financial messaging, replaces outdated systems, enabling detailed transaction data like payer and payee identifiers and remittance information. This enhances accuracy, reduces errors, and strengthens fraud detection, facilitating faster cross-border payments. The CBN emphasized that all domestic and international transaction messages must comply with ISO 20022 specifications, with mandatory data fields accurately populated. Non-compliance by the deadline will face regulatory action, with validation exercises starting October 20, 2025.
Additionally, the CBN mandated geo-tagging for all payment terminals to curb fraud and enhance oversight. Terminals must use double-frequency GPS receivers, register with a Payment Terminal Service Aggregator, and include precise latitude and longitude coordinates tied to merchant locations. Existing terminals have 60 days to comply, while new ones require geo-tagging before activation. Android OS version 10 is the minimum software requirement to ensure compatibility with the National Central Switch’s monitoring system. Non-compliant terminals will be barred from transactions.
These reforms aim to bolster Nigeria’s payment infrastructure, transparency, and financial inclusion. They align with the country’s economic progress, including a 67.12% surge in capital importation to $5.64 billion in Q1 2025 and foreign exchange reserves reaching a 44-month high of $41 billion. However, challenges like naira volatility (N1,560/$1 in the parallel market) and 21.88% inflation in July highlight the need for robust systems to sustain financial stability and investor confidence.
