The Central Bank of Nigeria (CBN) has mandated Point of Sale (PoS) operators to geotag their terminals within 60 days or risk being shut down.
In a circular released on August 25, 2025, the regulator ordered all licensed operators, which includes Moniepoint, OPay, and PalmPay, as well as other banks with agency banking licenses, to geotag every PoS terminal before October 20, 2025.
This means that the millions of POS devices currently used by agents and merchants across Nigeria must now be registered with exact GPS coordinates showing where each device is being used.
According to the CBN, the move is meant to curb fraud, stop the use of cloned or “ghost” terminals, and make it easier to track transactions in real time.
Under the new rule, all existing POS machines must be updated with built-in GPS systems and connected to the National Central Switch, which will monitor locations through a special software development kit (SDK).
Merchants will only be allowed to process payments within a 10-metre radius of their registered business address. Any device that is not geo-tagged within the deadline will no longer be allowed to operate.
The directive also applies to newly deployed POS devices, which must be geo-tagged before activation. Operators such as Payment Terminal Service Providers (PTSPs) and mobile money companies will be responsible for ensuring that all devices in their network comply.
The directive also aims to reduce fraud and unauthorised POS activity by ensuring each terminal’s location is verified and continuously monitored.
The central bank said it would begin compliance checks from October 20, 2025, a development that gives operators just about two months to upgrade.
This could come as a challenge with Nigeria having an estimated 2 million POS agents> The number is also growing daily.
The increasing number of POS agents and terminals is a major reason why the apex bank is introducing new directives for their operation.
In 2024, the CBN required that POS transactions be routed through licensed Payment Terminal Service Aggregators (PTSA) to improve tracking and transparency. That same year, POS operators were mandated to register their devices with the Corporate Affairs Commission (CAC).