CBN Gives Moniepoint, OPay, PalmPay 60 Days to Geo-Tag 4.2m PoS Terminals, Defaulters Risk Shutdown

The Central Bank of Nigeria (CBN) has announced sweeping new regulations for Nigeria’s Point-of-Sale (PoS) industry, mandating that all active terminals — more than 4.2 million nationwide, be geo-tagged within the next 60 days.

The directive, issued on August 25, 2025, targets operators including Moniepoint, OPay, PalmPay, and commercial banks, who must ensure every device in their networks is linked to its exact GPS coordinates. Under the new rules, any PoS machine operating outside a merchant’s registered business address will be shut down.

Merchants will only be permitted to process transactions within a 10-metre radius of their declared location. Devices not geo-tagged by the October 20 deadline will be deactivated from the National Central Switch, effectively halting their use.

“Any PoS terminal that fails to comply will be barred from operation,” the apex bank stated in its circular, stressing that both existing and newly deployed machines must meet the requirement before activation.

A Crackdown on Fraud and “Ghost” Terminals

The CBN’s move is aimed at tackling a persistent wave of fraud and abuse in the fast-growing PoS ecosystem. By enforcing geo-tagging and real-time location monitoring through a dedicated software development kit (SDK), regulators hope to stamp out the use of cloned, stolen, or “ghost” terminals, devices that are often untraceable and have fueled financial crimes across the country.

Payment Terminal Service Providers (PTSPs), banks, and mobile money operators will be responsible for ensuring compliance across their vast networks. According to the directive, compliance checks will begin immediately after the October 20 deadline.

The measure is also expected to strengthen consumer trust in digital payments by ensuring greater transparency and accountability in how and where transactions occur.

Nigeria’s PoS Boom — Opportunity and Risk

Nigeria’s PoS industry has expanded at an astonishing pace. In 2023 alone, the country recorded 1.5 million PoS agents, meaning there was one agent for every 80 citizens. In certain high-density areas, Bloomberg reports counted 1,600 PoS operators per square kilometre, underscoring just how deeply these devices have penetrated daily life.

This rapid growth has transformed PoS agents into the frontline of financial inclusion, enabling millions of Nigerians to access banking services outside of traditional branches. But it has also created fertile ground for unregulated activity, fraud, and service inefficiencies, problems the CBN says require stronger oversight.

CBN’s Tightening Grip on PoS Operations (2023–2025)

The new geo-tagging order did not emerge in isolation. It is the latest in a series of escalating regulatory interventions designed to rein in a booming but chaotic sector:

• 2023 — PoS adoption surges to record highs. The CBN flags rising fraud and urges industry players to strengthen compliance.
• 2024 (Q1) — All PoS transactions are required to be routed through Payment Terminal Service Aggregators (PTSA) to improve monitoring and transparency.
• 2024 (Q3) — Operators are mandated to register their businesses with the Corporate Affairs Commission (CAC), giving regulators clearer oversight of agents.
• 2025 (Q3) — CBN issues its toughest directive yet: all 4.2 million PoS terminals must be geo-tagged within 60 days. Any device operating outside a merchant’s declared 10-metre business radius risks shutdown.
• 2025 (Q4) — October 20 set as the compliance deadline, with inspections and enforcement slated to begin immediately thereafter.

This timeline reflects the regulator’s long-term strategy: moving from soft oversight to hard enforcement as the industry scales.

The Big Picture: Balancing Innovation and Control

For operators and merchants, the new regulation represents both a financial and logistical challenge. Upgrading millions of devices with geo-tagging capabilities will demand significant investment in technology, training, and compliance frameworks. Smaller operators may struggle to meet the deadline, raising concerns about possible disruptions in service.

For consumers, however, the directive could restore confidence in a system plagued by fraud and inconsistent service quality. By enforcing strict location rules, the CBN hopes to create a safer, more transparent digital payment ecosystem that better supports Nigeria’s broader financial inclusion goals.

At a macro level, the policy underscores the delicate balance regulators must strike: encouraging innovation while safeguarding trust in financial systems. What started as an informal workaround for cash shortages has evolved into a multi-billion-naira industry at the heart of Nigeria’s payment infrastructure.

The CBN’s latest directive makes one thing clear,  Nigeria’s PoS ecosystem has become too critical to be left unchecked.

Looking Ahead

As the October 20 deadline looms, attention will turn to how swiftly operators like Moniepoint, OPay, and PalmPay can adapt. The coming months will test not only the readiness of Nigeria’s PoS industry but also the regulator’s resolve to enforce its rules without stifling the financial access millions of Nigerians now depend on.

For the CBN, success will mean reducing fraud and restoring trust. For merchants and operators, it could determine who survives in an increasingly regulated landscape. And for consumers, the impact will be felt in the reliability, or sudden absence,  of the PoS services that have become central to everyday transactions in Africa’s largest economy.