CBN: PoS operators should link up NIBSS, UPSL for dual connectivity, system efficiency

*The Central Bank of Nigeria explains the new Point of Sale framework is aimed at ending reliance on ‘single transaction routing channels’ causing recurring service disruptions within the cashless payments ecosystem in the economy

Isola Moses | ConsumerConnect

The Central Bank of Nigeria (CBN) has directed all Point of Sale (PoS) operators and payment service providers to establish dual connectivity with the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL) within 30 days.

The CBN said the overarching objective of the new framework is to curb persistent transaction failures across the payments system in the country.

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ConsumerConnect reports the Bank’s latest directive is contained in a circular titled PSS/DIR/PUB/CIR/001/002, which Mrs. Rakiya Yusuf, Director of the Payments System Supervision Department as CBN signed and issued to the concerned stakeholders in the banking and finance space.

The directive applies to all acquirers, processors, payment terminal service aggregators and providers operating in Nigeria.

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The CBN also explained the policy also builds on its earlier decision of September 2024, to end reliance on single transaction routing channels.

According to the Bank, the existing system has contributed significantly to recurring service disruptions within the country’s cashless banking and payments ecosystem.

Significance of new framework, by regulator

Under the new framework, however, the CBN stated that all PoS operators are required to maintain active connections with both licensed payment terminal service aggregators—NIBSS and UPSL—and configure their systems to support automatic failover.

This will ensure seamless transaction switching whenever one channel experiences downtime, the CBN stated.

The banking sector regulator further noted that the measure is aimed at reducing frequent transaction failures that negatively impact merchants, consumers and businesses, particularly in the retail and informal sectors where PoS terminals remain a primary means of payment.

In order to strengthen system resilience and enforce compliance, the CBN has equally mandates the NIBSS and UPSL to conduct regular system tests with financial institutions and submit reports of the outcomes to the regulator.

In the upcoming regime, the two switching companies are also required to provide real-time notifications to banks and other financial institutions during system outages, and submit detailed incident reports to the Payments System Supervision Department within 24 hours, outlining the causes of failures and corrective actions taken.

On 30-day compliance window

The 30-day compliance window, which runs until mid-January 2026, places significant pressure on an industry that processes millions of transactions daily as Nigeria accelerates its transition to digital financial services.

It is also noted that PoS transaction failures have remained a recurring challenge despite previous regulatory interventions by the CBN, including the introduction of geo-tagging requirements introduced August 2025.

Meanwhile, industry stakeholders have broadly welcomed the dual-connectivity mandate as a critical step toward stabilising payment infrastructure, report stated.

However, some operators have expressed concerns about system integration costs, and the tight implementation timeline in the ecosystem.

Yet, industry analysts said the directive could significantly improve transaction success rates and restore confidence in electronic payments, according to report.

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