The Central Bank of Nigeria (CBN) on Friday, December 20, 2025, issued comprehensive directives aimed at strengthening Nigeria’s digital payment ecosystem, ensuring smooth foreign card usage, enhancing PoS security, and safeguarding financial stability.
The directives, experts say, could mark a turning point in consumer confidence and operational efficiency in the banking sector.
In a circular to banks, deposit money banks, and financial institutions, the CBN mandated uninterrupted ATM and PoS services for foreign-issued cards, emphasizing swift resolution of any service disruptions and prompt handling of customer complaints.
“Ensuring seamless access for foreign cards is critical, especially as Nigeria positions itself as a hub for international business and tourism,” said Celestine Ukpong, a leading economist. “Banks must take proactive measures, or the cost to investor confidence could be significant.”
PoS Terminal Security and ISO 20022 Migration
The apex bank further ordered that all PoS terminals be GPS-enabled and geo-tagged to their exact locations, a move aimed at tackling fraud, increasing transparency, and strengthening regulatory oversight. Additionally, the CBN directed that all PoS terminals migrate to the ISO 20022 standard by October 31, 2025, aligning Nigeria’s payment systems with global standards.
“Geo-tagging PoS terminals is a smart regulatory step,” noted Peter Adebayo, FCA, a financial consultant. “It improves traceability, reduces fraud risks, and sets the stage for a more secure digital economy.”
Agent Banking Rules and Oversight
To tighten operational control, the CBN imposed new agent banking restrictions, limiting PoS agents to working with only one principal institution. This policy is intended to enhance accountability, streamline supervision, and reduce operational risks within Nigeria’s rapidly expanding agent banking network.
License Revocations for Insolvent Institutions
The CBN also revoked the licenses of Aso Savings & Loans Plc and Union Homes Savings & Loans Plc, citing critical undercapitalization and insolvency. The move underscores the apex bank’s commitment to protecting depositors and maintaining systemic stability.
“Revoking licenses is never easy, but it’s necessary to maintain trust in the financial system,” said Ukpong. “It signals that the CBN is serious about enforcing prudential standards and protecting consumers.”
Adebayo added, “Such decisive action prevents contagion risks. It also serves as a reminder to other financial institutions to maintain robust capital buffers and sound risk management practices.”
Macro-Economic Context
The CBN Governor highlighted positive economic trends, including a decline in inflation to 16.05 per cent in October 2025 and a strengthening of Nigeria’s foreign reserves to $46.7 billion. Experts say these indicators suggest resilience in the economy despite ongoing structural and monetary challenges.
“Falling inflation and rising reserves are positive signals,” Ukpong explained. “Combined with the CBN’s operational reforms, they can boost investor and consumer confidence in the banking sector.”
Official Guidance
The CBN urged banks, financial institutions, and the public to monitor official announcements via its website (cbn.gov.ng) and social media handle @cenbank, as directives and updates continue to be issued.
“The reforms and policy enforcement are timely and necessary,” concluded Adebayo. “They reflect a central bank that is proactive in aligning Nigeria with global payment and financial best practices.”
Central Bank of Nigeria, CBN directives, ATM PoS services Nigeria, foreign card transactions, PoS geo-tagging, ISO 20022 Nigeria, agent banking rules, Nigerian banking sector, license revocation, Aso Savings, Union Homes, Celestine Ukpong, Peter Adebayo, Nigeria financial system, payment system reforms, digital banking Nigeria
The CBN orders seamless foreign card ATM/PoS services, mandates GPS and geo-tagging for PoS terminals, revokes licenses of insolvent lenders, while experts Celestine Ukpong and Peter Adebayo highlight the reforms’ impact on Nigeria’s banking sector and financial stability.
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