What to Know About CBN’s New Geo-Tagging Requirement for POS Terminals

The Central Bank of Nigeria (CBN) has issued a new directive requiring all Point of Sale (POS) terminals to be geo-tagged within the next 60 days, a move designed to curb fraud, enhance oversight, and modernize Nigeria’s digital payment ecosystem.

According to a circular released on August 26, 2025, any terminal not geo-tagged will be deactivated from October 20, 2025.

“This initiative is designed to ensure that all PoS terminals are traceable and that transactions are secure. Terminals operating outside their registered location will be flagged, and non-compliant devices will be deactivated,” the CBN stated.

Here’s a breakdown of what the policy means for operators, agents, merchants, and customers.

What Geo-Tagging Means

Geo-tagging is the process of embedding location data, such as latitude and longitude, into a digital device.
For POS terminals, this means linking each machine to its exact physical address using GPS technology, creating a traceable digital footprint that makes every device verifiable and harder to misuse.

The CBN’s Key Requirements

1. Geolocation Features
   All POS devices must have GPS and dual-frequency receivers for accurate location tracking.
2. Real-Time Location Transmission
   Terminals must capture and transmit their exact location at the start of every transaction.
3. Geofencing
   Each POS terminal will be restricted to a 10-metre radius around its registered location. Transactions outside this zone will be flagged for investigation.
4. Registration
   Licensed banks and fintechs—such as Moniepoint, OPay, PalmPay, and others—must register each device with exact merchant coordinates through a payment aggregator.
5. New Devices
   No new terminal will be certified or activated without geo-tagging.

Why Geo-Tagging Matters

• Crackdown on Fraudulent Terminals
  Geo-tagging eliminates “ghost” or cloned devices and reduces card fraud, unauthorized withdrawals, and misuse of mobile POS machines. It also disrupts ransom collections and terrorism financing through untraceable transactions.
• Better Oversight and Transparency
  Regulators gain real-time visibility of nationwide transactions, improving fraud detection and aiding financial inclusion strategies by identifying underserved areas.
• Boosting Consumer Trust
  Customers gain stronger protection knowing every POS is tied to a verified address, building confidence in digital payments.

Impact on Stakeholders

• Banks & Fintechs
  Institutions face the challenge of upgrading thousands of terminals and registering them within 60 days, requiring both funding and logistics.
• POS Agents & Merchants
  Operators must work strictly within 10 metres of their registered business location, potentially disrupting mobile POS services that move around to serve customers.
• Customers
  Shoppers stand to benefit most, with safer and more transparent transactions in Nigeria’s payment system.

Conclusion

The CBN’s geo-tagging directive is one of the most sweeping reforms in Nigeria’s digital payments landscape. While it presents operational hurdles for banks, fintechs, and agents, it promises stronger security, fraud reduction, and renewed consumer trust in the long run.

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