The Central Bank of Nigeria (CBN) has introduced a new directive that requires all Point of Sale (PoS) terminals in Nigeria to be geo-tagged within 60 days.
This order, announced on August 26, 2025, is part of the CBN’s plan to curb fraud, improve payment security, and enhance consumer protection in Nigeria’s fast-growing digital financial ecosystem.
According to the apex bank, PoS machines operating outside their registered locations will be flagged and deactivated starting from the compliance deadline of October 20, 2025.
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What Is Geo-Tagging of PoS Terminals?
Geo-tagging is the process of embedding location data (latitude and longitude) into a digital device or transaction. For PoS terminals, this means every time a customer makes a payment, the device will capture and transmit its exact location.
With CBN’s directive, all newly deployed PoS machines will feature:
- Native geolocation technology
- Dual-frequency GPS receivers for accurate tracking
- Real-time monitoring systems to flag unusual activity beyond a 10-meter radius
This move will ensure that each PoS terminal in Nigeria can be traced back to its registered merchant location, reducing fraud and improving transparency.
Why Did CBN Mandate PoS Geo-Tagging in 2025?
The CBN explained that the policy aims to:
- Eliminate “ghost” or cloned PoS terminals
- Strengthen oversight of fintech companies, banks, and payment aggregators
- Enable real-time tracking of suspicious financial activities
- Protect customers from fraudulent withdrawals, fund diversion, and terrorism financing
How Does This Protect You as a Customer?
The rise of PoS transactions in Nigeria has made life easier for millions, but it has also opened doors for fraudsters and criminal networks.
Criminals have exploited weak tracking systems for:
- Ransom payments during kidnappings
- Unauthorized ATM withdrawals
- Fake fund transfers
- Money laundering and terrorism financing
With CBN geo-tagging of PoS terminals, illegal transactions will be harder to conceal. Authorities will have real-time data to track fraudulent activities, potentially leading to quicker arrests and better financial security for Nigerians.
What Does This Mean for Banks and Fintechs?
Leading digital payment companies such as Opay, PalmPay, and Moniepoint are now required to:
- Register each PoS terminal with a payment aggregator
- Provide accurate merchant coordinates
- Ensure compliance before October 20, 2025
Non-compliant PoS machines will be deactivated permanently, meaning merchants must act quickly to avoid disruptions.
Final Thoughts: A Step Towards Safer Digital Payments in Nigeria
The CBN’s directive on PoS geo-tagging in Nigeria marks a significant milestone in securing digital transactions.
While it may not eliminate financial crimes completely, it is a bold step to protect customers, strengthen trust in Nigeria’s payment system, and reduce fraud risks.
As the deadline approaches, merchants, banks, and fintech operators must ensure compliance to continue serving Nigeria’s growing digital economy safely.
