CBN POS Geotagging: What It Means For Nigeria’s Payment System

The Central Bank of Nigeria (CBN) has issued a new directive requiring all participants in the nation’s payment ecosystem to fully migrate to the ISO 20022 messaging standard and implement mandatory geo-tagging of payment terminals by October 31, 2025.

In a circular released on its official website on Tuesday, the apex bank reminded Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Switching and Processing Companies, Payment Terminal Service Providers, Payment Solution Service Providers, Super Agents, and other licensed operators that ISO 20022 now represents the global benchmark for payments messaging.

The document, signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf, and dated August 25, 2025, explained that the directive is in line with SWIFT’s global migration timeline and is designed to ensure consistent, high-quality data across Nigeria’s financial system.

“All payment transaction messages exchanged domestically or internationally must be formatted in ISO 20022 in line with CBN and SWIFT specifications,” the circular emphasized. It further noted that institutions must also ensure the correct population of all mandatory data fields, including payer and payee identifiers, merchant and agent identifiers, as well as transaction metadata.

The CBN highlighted that compliance with these rules is mandatory and warned that all affected institutions must conclude migration activities and achieve full compliance before the October 31 deadline. Compliance validation exercises, according to the bank, will begin on October 20, 2025.

Beyond messaging standards, the circular also introduced the compulsory geo-tagging of payment terminals as a measure to strengthen oversight and combat fraud in the electronic payments space. Under this requirement, all existing and newly deployed terminals must come with native geolocation services enabled, double-frequency GPS receivers, and be registered with a Payment Terminal Service Aggregator (PTSA) using precise latitude and longitude coordinates.

Additionally, the apex bank mandated that Android OS version 10 will serve as the minimum software requirement for all payment terminals to ensure seamless compatibility with the National Central Switch’s geolocation monitoring framework.

The directive made it clear that terminals not routed through a PTSA will be barred from processing transactions, while geo-location data must be captured at the point of transaction and embedded in the message payload as a compulsory reporting field.
“All existing terminals must be geo-tagged within 60 days of this circular; new terminals going forward must be geo-tagged before certification and activation,” it added.

Why Is Geotagging Important

According to the CBN, these reforms aim to fortify Nigeria’s payments infrastructure, improve transparency, and align the country’s financial system with international best practices.

Geo-tagging refers to the process of attaching geographical information such as latitude and longitude to digital content like photos, videos, or websites.

This allows the content to be pinpointed with high accuracy. It can be automatically embedded by smartphones, applied during social media check-ins, or manually added through digital maps.

The technology is valuable for tracking, marketing, and delivering location-based services to users. This is why the CBN’s decision to geo-tag PoS terminals is so critical.

According to the apex bank, the initiative will help eliminate “ghost” or cloned terminals while also enabling real-time monitoring of payment activities.

In recent years, PoS terminals have unfortunately become a channel for criminal operations, including ransom payments to kidnappers, unauthorized withdrawals using stolen ATM cards, deceit-induced transfers, and even terrorism financing.

These crimes often thrive because many institutions lack the infrastructure for real-time reporting and tracking.
Now, with the CBN introducing mechanisms to monitor PoS transactions in real-time, it will be increasingly difficult for fraudulent activities through these channels to go undetected.

Though this move may not completely eradicate financial crimes, it clearly reflects the CBN’s strong commitment to fighting fraud and illicit money flows. If effectively implemented, it could also provide law enforcement with timely data to make arrests and enforce accountability where violations occur.

What Changes Will It Bring To Nigeria’s Payment System?

Greater Transparency And Fraud Prevention

By requiring all Point-of-Sale (PoS) terminals to be geo-tagged, the CBN aims to eliminate “ghost” or cloned devices that have been exploited for fraudulent activities. Every terminal now must be registered with precise GPS coordinates and remain within a 10-metre radius of its registered location during transactions.

The addition of double-frequency GPS receivers and integration with the National Central Switch means that authorities can monitor and flag suspicious movements or misuse in real time.

Improved Oversight And Accountability

Operators including banks, fintechs like Moniepoint, OPay, PalmPay, and other licensed providers are held responsible for ensuring all their PoS terminals are compliant. Non-compliant devices will be disabled starting October 20,2025.

This measure supports stronger regulatory oversight and ensures that all transactions are traceable and conducted in authorised locations, thereby boosting confidence in the payment ecosystem.

Geotagging Challenges In Implementation

While the geotagging mandate promises enhanced security, it presents significant logistical hurdles. With an estimated 4–6 million active terminals across Nigeria, the requirement to geotag all within 60 days demands an immense operation roughly 60,000 devices daily with skilled personnel and infrastructure upgrades.

Many older or legacy terminals lacking built-in GPS will need costly retrofitting, potentially squeezing small operators and impacting financial inclusion efforts.