The Central Bank of Nigeria (CBN) has issued a directive to major financial technology companies, including Moniepoint, OPay, PalmPay, and other payment service providers, to geotag approximately 4.2 million point-of-sale (PoS) terminals across the country within 60 days. This initiative is part of the regulator’s broader effort to enhance the transparency, security, and efficiency of electronic payment systems in Nigeria.
Geotagging involves linking each PoS terminal to its precise geographical location using global positioning system (GPS) technology. The CBN’s mandate aims to ensure accurate monitoring and management of PoS deployment, curb fraudulent activities, and strengthen the financial ecosystem. By requiring real-time location data, regulators and service providers can identify inactive or compromised terminals, track transaction patterns, and optimize the distribution of PoS devices across underserved areas.
Industry observers note that the rapid growth of digital payments in Nigeria has led to challenges in managing and monitoring millions of PoS terminals. Fraudulent transactions, terminal misplacement, and inadequate tracking have historically hindered the effectiveness of Nigeria’s cashless policy. The CBN’s geotagging requirement is expected to address these issues by providing reliable data for regulatory compliance and strategic planning.
Companies affected by this mandate are being urged to implement robust technological solutions to comply within the 60-day deadline. While the directive represents a significant operational task for payment service providers, it is also seen as a critical step in formalizing the digital payments infrastructure and increasing public confidence in electronic financial services.
In addition, geotagging PoS terminals is expected to facilitate targeted financial inclusion programs, improve service delivery in rural and semi-urban areas, and enhance the overall efficiency of the payments ecosystem. The CBN has indicated that compliance will be closely monitored, with potential sanctions for non-compliant operators, underscoring the urgency of this initiative in strengthening Nigeria’s digital financial infrastructure.
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