The Central Bank of Nigeria (CBN) has issued a new directive that requires all Point-of-Sale (POS) terminals in Nigeria to be geo-tagged. This policy aims to curb fraud, improve transaction traceability, and strengthen oversight within the country’s growing payment ecosystem.
What is POS Geo-Tagging?
Geo-tagging means embedding a device’s real-time GPS location in every transaction. For POS operators, this ensures that each payment can be traced back to a specific merchant location, preventing misuse of cloned or “ghost” terminals.
Key CBN Requirements
- Deadline for Existing Terminals
- All current POS devices must be geo-tagged within 60 days of the directive (by October 20, 2025).
- Non-compliant terminals will be deactivated.
- New Device Rule
- Any new POS terminal must be geo-tagged before certification and activation.
- Technical Standards
- Devices must include native geolocation with double-frequency GPS.
- Minimum supported software: Android 10.
- POS devices must integrate with the National Central Switch (NCS) SDK for geofencing and monitoring.
- Geofence Enforcement
- Transactions are only valid within a 10-meter radius of the merchant’s registered address.
- Any activity outside this radius will be flagged.
- Mandatory Data Capture
- Every transaction must transmit location data as part of the transaction payload.
Why This Matters
- Fraud Reduction: Stops cloned POS devices and untraceable agents.
- Merchant Accountability: Transactions tied to registered business addresses.
- Consumer Confidence: Safer and more transparent payments.
- Global Alignment: Part of Nigeria’s migration to ISO 20022 standards.
Impact on Banks, Fintechs & Merchants
- Banks & Fintechs: Must ensure all terminals in their networks are upgraded, geo-tagged, and compliant.
- Payment Aggregators & PTSPs: Responsible for deploying the NCS SDK and enforcing compliance across devices.
- Merchants & POS Agents: Need to use only approved, geo-tagged terminals or risk service disruption.
How to Stay Compliant
✅ Audit your existing POS devices now.
✅ Upgrade to Android 10 or higher where needed.
✅ Work with Payment Terminal Service Aggregators (PTSAs) for NCS SDK integration.
✅ Educate agents and merchants about geofence restrictions.
✅ Monitor for suspicious activities and out-of-range transactions.
The CBN’s POS geo-tagging directive is a major step in building a more secure, transparent, and trusted payment system in Nigeria. While it may require short-term adjustments, the long-term benefits—fraud prevention, accountability, and global standardisation—will strengthen the country’s financial ecosystem.
Deadline for compliance: October 20, 2025. If you are a bank, fintech, or merchant, now is the time to act.
