By Jemimah Wellington, JKNewsMedia Correspondent
NEW RULES from the Central Bank of Nigeria (CBN) mandate the geo-tagging of every Point of Sale (PoS) terminal in the country within 60 days, with precise GPS coordinates recorded for each active device.
In a circular dated 25 August 2025, the regulator directed payment service providers and banks – including Moniepoint, OPay and PalmPay – to register more than 4.2 million terminals to their exact operating locations, stating that any PoS used away from its registered business address will be shut down once enforcement begins.
According to the circular, the bank said the objective is to curb fraud, stop the use of cloned or “ghost” machines, and enable real-time tracking of transactions nationwide.
The CBN stated that geo-tagging will ensure every transaction is traceable to a specific address, improving the integrity of electronic payments and strengthening accountability across the agent network.
The directive requires all existing terminals to be updated with GPS capability and connected to the National Central Switch.
The bank noted that a dedicated software development kit (SDK) will capture location data at the point of transaction and feed it into the central monitoring framework.
By linking each device to precise latitude and longitude, the regulator said it will verify whether a terminal is operating where it is registered and act quickly when discrepancies arise.
Under the rules set out in the circular, a PoS machine must remain within roughly 10 metres of the merchant location on file.
The CBN explained that agents operating from properly registered shops, kiosks or stands should expect continuity of service, provided the stored address reflects where the device is actually used.
However, the regulator warned that agents who registered residential addresses but routinely transact from markets, roadside points or other distant locations risk blocked transactions under the new controls.
The apex also bank described the policy as a targeted response to criminal abuse of mobile PoS devices.
It stated that kidnappers, scammers and other illicit networks have exploited loosely monitored terminals to move funds and obscure transaction trails.
By enforcing strict location controls, the circular said investigators will be able to pinpoint the exact spot of a transaction and disrupt the use of roaming machines.
While insisting on strict enforcement, the bank emphasised that the measure does not single out legitimate operators.
It said compliant agents and merchants have no cause for concern and should continue normal operations so long as their registered details are accurate.
The CBN urged all operators to review their records immediately and ensure that the registered address for each device corresponds to the physical site of use, adding that corrective updates should be completed well before the deadline.
The circular underscored that compliance within the 60-day window is compulsory for all licensed payment service providers and financial institutions.
The bank said operators are responsible for rolling out the GPS updates, integrating with the National Central Switch and ensuring that their networks enforce the location limit automatically.
According to the directive, terminals that fail to meet the geo-tagging requirement within the timeline will be unable to process transactions under the new controls.
The regulator framed the initiative as part of a wider effort to safeguard customers and reinforce confidence in electronic payments.
It stated that rapid growth in PoS usage has advanced financial inclusion but also created vulnerabilities exploited by cloned or ghost terminals.
By tying each device to verifiable coordinates, the bank said the industry will gain stronger controls against misuse of merchants’ credentials and the diversion of transactions through unregistered points.
Operationally, the bank advised that agents who intend to relocate should first update their merchant records and obtain confirmation from their providers before moving devices.
The circular said this step will prevent automatic flags and service interruptions triggered by location mismatches.
In reiterating its position, the CBN said the directive applies across the board to all providers listed under its licensing regime, naming Moniepoint, OPay, PalmPay and commercial banks among those expected to comply.
The bank noted that the same standards will govern both new and existing deployments, and that every transaction initiated on a PoS must carry location metadata captured through the SDK linked to the National Central Switch.
The circular concluded with a call for immediate action. The bank asked operators to commence device audits, validate merchant addresses and deploy the software updates required to embed GPS readings in transaction flows.
Agents and merchants, it said, should verify that their registered details match the precise spot where they operate, as terminals detected outside recorded locations will be shut down under the policy.
Providing further clarity, the bank explained in the circular that geo-tagging functions as a location stamp attached to a terminal’s activity.
Each time a PoS processes a payment, the GPS coordinates recorded by the device are checked against the merchant address held on file.
Where the readings align within the tolerance of about 10 metres, the transaction proceeds; where they do not, the system is designed to block the transaction and flag the terminal for review.
The bank said the approach is intended to discourage the practice of roaming with PoS machines and to close gaps that make it difficult to trace the flow of funds in criminal investigations.
It restated that the directive is a compliance measure rooted in security and accountability, adding that the outcome it seeks is a payment environment in which operators who follow the rules continue business as usual while attempts to exploit the network through cloned, ghost or mobile terminals are systematically denied.
