CBN Geo-Tagging of PoS Terminals: What is it, and How to Activate it
The Central Bank of Nigeria (CBN) has issued a new directive requiring all Point-of-Sale (PoS) terminals in the country to be geo-tagged within 60 days. The policy, announced on 26 August 2025, aims to combat fraud, improve consumer protection, and strengthen oversight of Nigeria’s rapidly expanding digital payments sector.
According to the CBN, geo-tagging will ensure every PoS device is traceable to its registered merchant location. Any terminal operating outside a 10-meter radius of that address will be automatically flagged and deactivated. Devices that fail to comply by 20 October 2025 will no longer be allowed to operate.
“This initiative is designed to eliminate cloned or ‘ghost’ terminals and ensure transactions remain secure,” the bank said in its statement.
What is Geo-Tagging?
Geo-tagging is the process of attaching precise geographical coordinates (latitude and longitude) to an object or activity. In this case, PoS machines will be digitally “pinned” to their registered business addresses. If a terminal is moved beyond its approved location, it will be automatically disabled.
How the System Will Work
New PoS terminals issued in Nigeria will now be required to include native geolocation features and dual-frequency GPS receivers for greater accuracy. Once the system takes effect, PoS devices must capture and transmit their location in real time whenever a transaction is initiated.
Licensed operators—including banks and major fintech firms such as Moniepoint, OPay, and PalmPay—will be required to register each terminal with a payment aggregator and provide exact merchant coordinates.
Industry Concerns
While the CBN says the move is critical to protecting financial integrity, operators warn of practical challenges.
Obioha Oti, Acting National President of the Association of Mobile Money and Bank Agents, welcomed the policy but questioned the feasibility of implementing it in such a short timeframe.
Nigeria has an estimated 10 million PoS machines, with about half currently active. Oti noted that only devices running Android version 10 or higher can support geo-tagging and geofencing, meaning as many as 40% of existing machines may need to be replaced or upgraded.
“It will be extremely difficult to geo-tag more than four million devices within 60 days,” he said. “A phased approach would prevent disruption and allow operators to manage the transition effectively.”
Implications for Businesses and Consumers
For PoS operators, the rule means devices will shut down automatically if moved outside their registered locations. For example, a machine registered in Lekki, Lagos, will cease to function if taken beyond its designated 10-meter radius.
Analysts say the directive will likely impose short-term costs on operators, particularly fintech companies with large networks, but may boost long-term trust in Nigeria’s digital payments ecosystem by curbing fraud and improving transparency.
What Comes Next
With just weeks to meet the deadline, banks and fintechs are expected to begin recalling non-compliant devices and rolling out replacements or software upgrades. The CBN has made clear that only geo-tagged PoS terminals will be permitted to operate going forward.
The policy reflects Nigeria’s broader efforts to modernize its payments system and close regulatory loopholes that have fueled financial fraud in Africa’s largest economy.
