The CBN’s new mandate on geo-tagging PoS machines is set to significantly disrupt agents and, by extension, mobile money operators. This policy comes at a time when the industry is experiencing rapid growth, with PoS transactions surging to ₦10.5 trillion in the first quarter of 2025.
On August 25, the Central Bank (CBN) issued a notice mandating the migration of Nigerian payment messaging to the ISO 20022 standard. The regulator also mandated the geo-tagging of all payment terminals in the country.
Payment terminals, in simpler terms, PoS machines, will have to be geo-tagged before October 20. Geo-tagging simply means attaching the exact geographic location (latitude and longitude) to something, in this case, a PoS machine. However, this guideline extends beyond geo-tagging.
What the guidelines require
The guidelines state that all payment terminals (existing and new) must have built-in geolocation enabled, using Double-Frequency GPS for accuracy. Then, every terminal must be registered with a Payment Terminal Service Aggregator (PTSA). And this registration must include the exact latitude/longitude of the merchant or agent’s business location.
All operators must ensure their terminals and apps are certified by the National Central Switch (NCS). And the certification requires integrating the NCS geolocation software development kit into the PoS application.
The terminals must run on Android OS v10 or higher. The guidelines also fix a 10-meter radius as the allowed geofence for merchant activity. Then, every transaction must capture geolocation at the start and include it in the transaction data.
Potential implications of the guidelines range from total disposal of some of the terminals to a re-registration of the agents. BusinessDay spoke to a PoS agent in Ikoyi, who noted that her PoS was registered to her address in Yaba. Based on the new regulations, she would have to re-register the terminal at her location in Ikoyi.
Beyond the immediate compliance requirements, the guidelines carry far-reaching implications, particularly for PoS terminals without GPS capability. For instance, a review of the widely deployed MP35P device used by Moniepoint reveals it lacks a GPS sensor. Under the new rules, this limitation would render such devices non-compliant, ultimately leading to their gradual phase-out.
Apart from the GPS compliance requirement, the MP35P device, widely used by Moniepoint agents, runs on Android OS v5.1, a far cry from the Android OS v10 threshold. This leaves the future of over 300,000 Moniepoint agents who rely on this device hanging in the balance.
Other PoS devices face similar challenges. For instance, while DotPay’s machine meets the GPS requirement, it falls short on software, still running on Android OS v7.2. PalmPay’s Touch PoS device does not even operate on Android at all. This points to a deeper systemic problem: compliance depends not only on hardware but also on outdated operating systems.
The new guideline has fueled significant uncertainty among mobile money operators. Executives at Moniepoint and Opay told BusinessDay they are still reviewing the policy document to fully grasp its implications.
A Moniepoint source explained that the company is working with technical partners and terminal manufacturers to explore transition options, while Opay is considering whether software upgrades alone could deliver compliance.
Mounting concerns among agents
The uncertainty is already breeding unease among PoS agents. Speaking with BusinessDay, David Abiodun, Lagos State Chairman of the Association of Mobile Money and Bank Agents of Nigeria (AMMBAN), explained,
“Although we anticipated it, we also recognise that this regulation will create significant challenges in the system.”
Abiodun stressed that while the association had prior awareness of the Central Bank of Nigeria’s (CBN) intentions, agents were not meaningfully consulted before the policy was announced. He recalled attending a meeting in Ikoyi about six weeks ago where the issue of geo-tagging was discussed with the CBN, noting:
“We told them clearly: before you implement geo-tagging, several things need to be put in place. If those issues are not addressed and the policy is implemented and enforced prematurely, then I am afraid we will encounter serious challenges.”
The stakes for Nigeria’s payment ecosystem
With just 55 days left before the geo-tagging deadline, agents complain of radio silence from their Mobile Money Operators (MMOs). Interviews with PoS operators across Lagos reveal that many have not received any official communication or instruction to re-register their devices in line with the new requirements.
One agent remarked bluntly: “Nothing of such.” Abiodun corroborated this, adding, “As far as I know, there is nothing like that yet, to be candid with you.”
The stakes are high. In the first quarter of 2025 alone, over N10.5 trillion worth of transactions were conducted through PoS terminals. In all of 2024, PoS transactions hit N18.32 trillion. Essentially, these figures have cemented their place as a critical pillar of Nigeria’s payment ecosystem. This growth has come alongside a decline in ATM usage, reflecting a structural shift in how Nigerians access cash and digital financial services.
A BusinessDay review of multiple PoS machines found that none currently comply with the new CBN regulations, raising fresh uncertainty across the payment ecosystem. While the directive aligns with global best practices for security and traceability, its implementation challenges risk triggering a widespread disruption, or even a shutdown, of the PoS network if not urgently addressed.
