CBN Mandates Geo-Tagging for All POS Terminals to Curb Fraud
By Joseph Iyaji | Akahi News
Nigeria – The Central Bank of Nigeria (CBN) has issued a new directive requiring all Point-of-Sale (POS) terminals to be geo-tagged, effectively ending the practice of moving devices from one location to another. The directive, issued on August 25, 2025, affects over 4.2 million POS terminals operated by Moniepoint, OPay, PalmPay, mobile money operators, and other payment providers across the country.
Under the new rule, every POS device must be linked to a single business address and can only operate within a 10-metre radius of that location. Terminals used outside their registered addresses will be automatically shut down. Existing machines will be upgraded with GPS tracking, while new devices will have the feature installed prior to activation. All terminals are required to connect to the National Central Switch, where a specially designed software development kit (SDK) monitors them in real time.
Reason Behind the Directive
The rapid expansion of POS services in Nigeria, which saw 1.5 million agents in 2023, brought challenges such as:
- Fraudulent or “ghost” POS terminals
- Cloned machines used to scam customers
- Agents moving devices around, complicating regulation
By enforcing geo-tagging, the CBN aims to accurately track transactions, shut down fraudulent or unregistered terminals, and enhance trust and transparency in the digital payment ecosystem.
Previous Reforms
This is the latest step in ongoing efforts to regulate the sector. In 2023, the CBN mandated:
- That all POS transactions go through licensed Payment Terminal Service Aggregators (PTSA)
- POS operators to register with the Corporate Affairs Commission (CAC)
Geo-tagging is designed to further tighten oversight and protect millions of Nigerians who rely on POS transactions daily.
Implications for Stakeholders
- POS agents: Terminals must operate from their registered addresses; mobile use without approval will no longer be permitted.
- Customers: Transactions are expected to be safer with fewer risks of fraud.
- Fraudsters: Their opportunities are being curtailed.
- Financial system: Increased regulation strengthens confidence in digital payments as cash usage declines.
The CBN emphasised that the goal is not to restrict operators unnecessarily but to protect the integrity of Nigeria’s financial system, ensuring POS remains a reliable bridge for transactions.
From October 2025, every POS terminal in Nigeria must be geo-tagged, marking the end of “roaming” devices and the beginning of a safer, more transparent digital payment environment.
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