The Central Bank of Nigeria (CBN) has issued a new ruling that will close down POS devices that are utilised outside of a merchant’s registered address.
In a circular released on 25 August 2025, the CBN required all licensed operators, including Moniepoint, OPay, PalmPay, and banks across Nigeria, to geotag every POS terminal within 60 days. With this directive, all POS devices currently utilised by agents and merchants across the region must be registered with the exact GPS coordinates showing where each device is being operated.
Why did the CBN implement this?
According to the central bank, the initiative focuses on mitigating fraud, halting the use of cloned or ghost terminals, and simplifying tracking transactions in real time. Under the new regulation, all existing POS devices must be updated with built-in GPS systems and connected to the National Central Switch, which monitors locations through a software development kit (SDK).
When it comes to merchants, they will only be allowed to process payments within a 10-metre radius of their registered business address, with any device that is not geotagged within the deadline not being able to continue to operate.
Furthermore, the CBN’s directive also affects newly deployed POS devices, which must be geotagged before activation. Operators, including Payment Terminal Service Providers (PTSPs) and mobile money companies, will have to ensure that all devices in their network fall in line with the central bank’s initiative. The regulation also centres on minimising fraud and unauthorised POS activity by ensuring each terminal’s location is verified and monitored constantly.
The CBN plans to start compliance checks from 20 October 2025, which means that operators have a two-month period to upgrade their active terminals across Nigeria. The geotagging rule underlines the central bank’s commitment and focus on increasing oversight of the country’s POS industry and reducing fraud rates nationwide.
