The Central Bank of Nigeria (CBN) has issued a directive to payment service providers, instructing them to initiate tracking of all Point of Sale (PoS) transactions. This move is aimed at improving transparency and ensuring proper regulation of payment activities.
In a circular dated September 11, 2024, and signed by Oladimeji Taiwo, Director of Payments System Management at the CBN, the bank set a 30-day deadline for Payment Service Providers (PSPs) to comply by connecting with Payment Terminal Service Aggregators (PTSA). The directive follows the CBN’s April 2024 decision to grant a second PTSA license to Unified Payment Services Limited (UPSL), a step taken to address concerns over the reliance on a single aggregator for PoS transactions.
Under the new guidelines, all PoS transactions at both merchant and agent locations—whether processed on physical or electronic PoS devices—must be routed through a CBN-licensed PTSA. Payment Terminal Service Providers (PTSPs) must configure their devices and applications to align with this directive, ensuring flexibility for acquirers to choose from certified processors and PTSAs licensed by the CBN.
In addition, PTSPs are required to submit monthly reports to the CBN, detailing the number of merchants and agents they manage, as well as the PTSA services used for routing transactions. Similarly, PTSAs must also submit monthly transaction reports to the central bank.
The CBN has warned that failure to comply with this directive will result in appropriate sanctions, urging service providers to regularize their operations with PTSAs and confirm compliance within the specified 30-day period.
