Why your PoS may stop working after October 31 – CBN Reports

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Point-of-Sale (PoS) terminal providers in Nigeria, particularly fintech firms, are facing possible service interruptions and revenue slowdowns as the Central Bank of Nigeria (CBN) enforces its October 31 deadline for the mandatory geo-tagging of all PoS terminals.

Nigeria currently has over 8.3 million registered PoS terminals, with about 5.9 million deployed as of March 2025, making the scope of the exercise one of the largest in the country’s payment industry.

Ahead of implementation, the Nigeria Inter-Bank Settlement Systems (NIBSS) instructed all PoS issuers to submit details of their terminals for recertification. According to NIBSS, the process will “ensure regulatory alignment, improve location tracking, and enhance transparency in electronic payments.”

While regulators argue the policy will strengthen oversight and curb fraud, industry stakeholders warn that the financial and operational strain of compliance, coupled with rigid location restrictions, could hinder market growth and affect merchants.

A senior executive at a leading fintech, speaking anonymously to Nairametrics, described the new policy as both necessary and burdensome. “This is a CBN regulation, and we are all going to bear the cost one way or the other. Aside from the technical costs, PoS growth is going to slow, and revenue is going to stall,” the official said.

The executive also raised concerns about disruptions at the merchant level, citing the 10-metre movement restriction for tagged terminals. “A lot of merchants would suddenly realise their PoS is not working, probably because they move a few metres away from their place of business to attend to a customer. That limit is going to be a challenge for many,” he added.

Another fintech insider echoed the challenges, revealing that firms have already put expansion plans on hold. “We have technically stopped onboarding new PoS for now because we are focused on meeting the recertification deadline with NIBSS. The impact will be temporary, but there is no doubt this will slow down growth in the short term,” the source explained.

The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) also voiced strong concerns. Its National Vice President, Mr. Yusuf Adeyemo, described the compliance timeline as unrealistic. “Imagine we have over 7 to 8 million active PoS terminals, and we are expected to geo-tag them all within 60 days. That is not practical, especially with challenges around address verification and network issues,” he said.

Adeyemo also criticised the 100-metre operational radius stipulated by the CBN. “If a PoS agent in a motor park moves within 100 metres from the tagged location, the terminal will stop working. That is not realistic. The regulator needs to increase that distance to allow flexibility,” he added.

The geo-tagging requirement forms part of the CBN’s broader regulatory overhaul. In August, the apex bank issued a circular directing all players in Nigeria’s payments ecosystem—Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Mobile Money Operators (MMOs), Super Agents, and switching companies—to adopt the ISO 20022 messaging standard and geo-tag all payment terminals by October 31, 2025.

The CBN emphasised that the reforms would align Nigeria with SWIFT’s global migration timeline, improve payment data quality, and enhance transparency in financial transactions. “All payment transaction messages exchanged domestically or internationally must be formatted in ISO 20022 in line with CBN and SWIFT specifications,” the circular stated

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