The Central Bank of Nigeria (CBN) has issued a directive requiring all Point-of-Sale (POS) terminals in the country to be geo-tagged within 60 days. The move affects over 4.2 million devices, including Moniepoint, OPay, PalmPay, and mobile money operators. Terminals that fail to comply will be deactivated.
Under the new rule, each POS device must be linked to a single business address and can only operate within a 10-metre radius. Devices used outside their registered location will be automatically shut down. Existing machines will be upgraded with GPS tracking, while new devices will have the feature installed before activation. All terminals must connect to the National Central Switch, where a software development kit (SDK) monitors them in real time.
The CBN said the measure is necessary to address challenges arising from the rapid expansion of POS services. By 2023, Nigeria had 1.5 million POS agents—roughly one for every 80 people—with some areas recording up to 1,600 agents per square kilometre. The boom, however, has led to fraudulent or “ghost” terminals, cloned devices used for scams, and the unregulated movement of POS machines.
Geo-tagging is expected to:
Track the exact location of transactions
Shut down unregistered or fraudulent devices
Strengthen transparency and confidence in the payment system
The directive builds on earlier reforms, including CBN’s 2023 requirement for all POS transactions to go through licensed Payment Terminal Service Aggregators (PTSA) and mandatory registration with the Corporate Affairs Commission (CAC).
For POS agents, the rule means machines must remain at their registered addresses, while customers can expect safer transactions. Analysts say the move is designed to protect the integrity of the financial system, particularly as digital payments replace cash in many parts of Nigeria.
“POS is still central to daily transactions in Nigeria,” a CBN spokesperson said, “but from now on, it must operate under stricter oversight to ensure security and reliability for everyone.”
From October 2025, every POS terminal in Nigeria must be geo-tagged, a move the CBN says will eliminate ghost machines and reduce fraud in the sector.
