As the Central Bank of Nigeria (CBN) sets an October 31, 2025, deadline for mandatory geo-tagging of all Point-of-Sale (PoS) terminals, fintech companies and operators in Nigeria are warning of potential service disruptions and financial losses. With approximately 8.3 million registered PoS terminals, of which 5.9 million are deployed as of March 2025, the scale of this regulatory overhaul is significant.
The Nigeria Inter-Bank Settlement System (NIBSS) has instructed PoS issuers to submit details of all terminals for recertification to ensure compliance with the new rules, which aim to enhance transparency and oversight in electronic payments.
Industry Concerns Over Costs and Constraints
Fintech executives have expressed apprehension about the operational and financial burdens of the CBN’s directive. An anonymous official from a major fintech firm told reporters that the regulation, while well-intentioned, could hinder industry growth. “The compliance costs, combined with restrictions on terminal movement, will likely slow PoS expansion and impact revenues,” the executive stated. They highlighted the 10-meter movement limit for geo-tagged terminals as a particular challenge, noting that merchants moving slightly beyond this radius to serve customers could face transaction failures.
Another fintech source revealed that some companies have paused onboarding new PoS terminals to focus on meeting the recertification deadline. “This will temporarily stall growth, as our resources are tied up in compliance efforts,” the source explained.
PoS Operators Call for Flexibility
The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has voiced concerns about the feasibility of the CBN’s timeline and restrictions. AMMBAN’s National Vice President, Yusuf Adeyemo, described the 60-day window to geo-tag millions of terminals as unrealistic, citing challenges with address verification and network reliability. He also criticized the 100-meter operational radius, arguing it is impractical for agents in dynamic environments like motor parks. “If an agent moves slightly beyond this limit, their terminal could stop functioning, which isn’t practical,” Adeyemo said.
While acknowledging the potential of geo-tagging to curb fraud by preventing terminals from being used in unauthorized locations, Adeyemo stressed the need for a national agent verification registry. “Geo-tagging terminals alone won’t stop fraudulent transactions if the agents themselves aren’t certified,” he noted.
CBN’s Push for Regulatory Reform
The CBN’s geo-tagging mandate is part of a broader effort to modernize Nigeria’s payment ecosystem. In August 2025, the CBN issued a circular requiring all payment system participants, including banks, mobile money operators, and super agents, to adopt the ISO 20022 messaging standard and geo-tag all payment terminals by the October deadline. The reforms aim to align Nigeria with global payment standards, such as those set by SWIFT, and improve transaction data quality.
Under the new rules, all PoS terminals must feature native geolocation services with double-frequency GPS receivers, be linked to precise merchant coordinates, and route transactions through a Payment Terminal Service Aggregator (PTSA). The minimum software requirement is Android OS 10, and geo-location data must be included in transaction messages. The CBN plans to begin validation exercises on October 20, 2025.
Balancing Benefits and Challenges
The CBN and NIBSS assert that geo-tagging will enhance accountability, enable real-time transaction monitoring, and reduce fraud, ultimately boosting consumer confidence in digital payments. Geofencing and automated alerts are expected to help authorities detect and prevent unauthorized terminal use.
However, industry stakeholders warn of significant trade-offs. Compliance costs, including terminal upgrades, recertification fees, and software updates, could strain fintechs and operators, many of whom operate on tight margins. These costs may lead to higher transaction fees for consumers. Additionally, strict geo-fencing rules could cause transaction failures in busy markets or mobile retail settings, potentially undermining trust in electronic payments.
Looking Forward
As the deadline approaches, fintechs and PoS operators are urging the CBN to extend the timeline and relax movement restrictions to mitigate disruptions. The success of the geo-tagging initiative will depend on balancing regulatory goals with the practical realities of Nigeria’s dynamic payment landscape.
