PoS Terminals: CBN extends geo-tagging enforcement deadline, imposes N5m penalty

*The Central Bank of Nigeria introduces N5 million minimum penalty with additional N300,000 per day for non-compliance with the ongoing directive on geo-tagging (or geo-fencing) of Point of Sale (PoS) terminals, extending its enforcement deadline for agent location, exclusivity rules till April 1, 2026

Gbenga Kayode | ConsumerConnect

In a significant move to encourage more Point of Sale (PoS) terminal operators to comply in the ecosystem, the Central Bank of Nigeria (CBN) has extended the enforcement deadline for agent location and exclusivity rules till April 1, 2026.

ConsumerConnect reports the CBN has tightened regulation on agent banking by mandating geo-tagging (or geo-fencing) of PoS terminals in the financial ecosystem across the country.

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The banking sector regulator has also introduced a minimum penalty of N5 million, with additional N300,000 per day in regard to the ongoing non-compliance with the directive.

Musa I. Jimoh, Director of Payments System Policy at CBN, disclosed these developments in a circular (PSP/DIR/CON/CWO/001/049) released Monday, October 6, 2025.

The Bank, in the circular, introduced new compliance measures to reflect the increasing sophistication of the PoS ecosystem and Nigeria’s efforts at deepening financial inclusion in the West African country.

According to the Bank, implementation of the fresh guidelines would take effect immediately.

The CBN, however, noted the stricter measures regarding the need to ensure PoS agents are tied to fixed locations (agent location) and exclusive operations (agent exclusivity) would commence April 1 next year.

Jimoh, Director of Payments System Policy, stated in the communication: “This circular takes effect from the date of release, while the implementation of agent location and agent exclusivity shall be with effect from April 1, 2026.”

Objectives of geo-tagging of PoS terminals, by CBN

Earlier, the CBN had explained the guidelines on geo-tagging would require that all PoS terminals used in agent banking be geo-locked to their registered premises to ensure security of consumers of financial products and services at such locations.

The CBN, in a circular August 25, 2025, had directed all existing PoS terminals to be geo-tagged within 60 days, and new devices must be geo-tagged before activation.

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The banking regulator as well mandated the use of ISO 20022 messaging for payments and required devices to support geolocation and geofencing, limiting operational radius to ~10 metres from registered addresses.

The Bank stated that terminals that failed the compliance checks scheduled from October 20, 2025, would be deactivated.

Nonetheless, for merchants, this directive has the potential to limit the mobility of PoS services and reinforce fixed-location operations in the Financial Technology (FinTech) cum financial inclusion space in Nigeria, according to report.

The banking regulator also said any PoS device operating outside such located premises might face sanctions.

Besides, the CBN noted the principals and super-agents must ensure these controls are in place.

Principals are equally required to publish and maintain updated registers of all their agents, both online and in physical branches.

Likewise, super-agents are expected to have at least 50 agents spread across Nigeria’s six geopolitical zones at all times.

Any proposed relocation, transfer, or closure of agent premises must be approved in writing, with a 30-day public notice required at the agent location to inform consumers.

Sanctions for defaulting PoS operators

In regard to sanctions on any PoS regulators for non-compliance, the Bankers’ Bank averred any prolonged breach of these guidelines could cost PoS operators tens of millions of Naira before further regulatory action(s), including delisting, suspension, blacklisting, are considered.

Other penalties in the guidelines cover late submission of reports, improper agent conduct, fraud, non-permissible activities, and failure to maintain agent records or accounts.

With over 8.3 million registered PoS terminals and 5.9 million already deployed across Nigeria as of March 2025, the scale of the geo-tagging exercise is massive, a report said.

It is further noted that the latest extension of enforcement deadline to April 2026 has given breathing space but does not soften the threat.

Regarding the enforcement day, non-geo-locked terminals may be shut down, and agents or institutions may incur heavy fines for non-compliance.

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