What to know about CBN’s geo-tagging requirement for POS

The Central Bank of Nigeria (CBN) has issued a directive requiring all Point of Sale (POS) terminals to be geo-tagged within the next 60 days, a policy aimed at curbing fraud, boosting security, and modernising Nigeria’s digital payment ecosystem.

According to the CBN’s circular issued on August 26, 2025, any terminal not geo-tagged will be deactivated from October 20, 2025.

“This initiative is designed to ensure that all PoS terminals are traceable and that transactions are secure. Terminals operating outside their registered location will be flagged, and non-compliant devices will be deactivated,” the circular reads.

Here is what to know about CBN’s geo-tagging requirement for POS terminals.

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What Geo-tagging Means

Geo-tagging involves embedding location data, such as latitude and longitude into a digital device. For POS machines, it means linking each terminal to its exact physical address using GPS technology. This creates a traceable digital footprint, making every terminal verifiable and harder to misuse.

The CBN’s key requirements

The directive spells out several compliance rules for operators:

Geolocation features

All POS devices must come with native GPS functions and dual-frequency receivers for accurate location tracking.

Real-time location transmission

Terminals must capture and send their location at the start of every transaction.

Geofencing

Each registered POS will have a 10-metre radius digital boundary. Any transaction outside this zone will be flagged for investigation.

Registration

Licensed financial institutions and fintechs, including banks, Moniepoint, OPay, and PalmPay must register each device with a payment aggregator, providing exact merchant coordinates.

New Devices

No new terminal will be certified or activated without geo-tagging.

Why Geo-Tagging Matters

The CBN views this directive as a multi-layered security measure to tackle fraud and strengthen oversight.

Crackdown on fraudulent terminals

Geo-tagging eliminates “ghost” or cloned POS devices by tying every terminal to a legitimate, verified location.

It also curbs crimes like unauthorised withdrawals using stolen cards, since transactions outside a registered location can be flagged.

The policy could also disrupt ransom collections and terrorism financing carried out through untraceable POS payments.

Better oversight and transparency

Regulators gain real-time visibility of transactions nationwide, helping detect unusual patterns and respond quickly.

Location data will also guide financial inclusion strategies, highlighting underserved areas lacking payment points.

Boosting consumers’ trust

For customers, the assurance that every transaction is tied to a verified business address offers stronger protection against fraud and builds confidence in digital payments.

Impact on Stakeholders

The CBN’s geo-tagging rule will change how POS transactions work and impact everyone involved. Banks, fintechs, agents, merchants, and customers will each experience the changes differently, with their own challenges and benefits.

Banks & fintechs

Operators will need to upgrade their terminals and register thousands of devices within the 60-day window, a logistical and financial challenge.

POS agents & merchants

Agents must now operate strictly within 10 metres of their registered address, potentially disrupting mobile POS businesses that serve customers in multiple locations.

Customers

Shoppers stand to benefit the most as the system promises safer and more transparent transactions.

NIGERIAN TRIBUNE