The Central Bank of Nigeria (CBN) has set a minimum penalty of ₦5 million for any PoS agent that violates its directive mandating the geo-tagging (or geo-fencing) of Point of Sale terminals. In addition, non-compliant agents will face an extra ₦300,000 fine for each day the violation continues.
CBN released the new circular—signed by Musa I. Jimoh, Director of Payments System Policy—on October 6, 2025 to capture the increasing complexity of the PoS ecosystem and support Nigeria’s drive toward financial inclusion.
Although the directive technically takes effect immediately, but the CBN has postponed its full implementation to April 1, 2026. The more stringent provisions—for those requiring PoS agents to operate from fixed locations and maintain exclusivity—will also come into force on that date.
The extension gives PoS agents and their service providers more time to comply with the Apex bank's regulations.
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.
The CBN's Circular partly read.
The CBN’s new rules require every PoS terminal used for agent banking to be locked to its registered location. Any terminal used outside its approved area could face sanctions, and super agents must ensure compliance.
In addition, operators must maintain and publish updated lists of all their agents, while larger “super agents” must have at least 50 agents spread across Nigeria’s six geopolitical zones. Any change in an agent’s location or closure now needs written approval and a 30-day notice to customers.
These circulars follow the first directives CBN issued in August 2025, which required all PoS devices to be geo-tagged and compliant with ISO 20022 standards. The rule aims to improve oversight, reduce fraud, and strengthen financial inclusion. Meanwhile, it may also increase compliance costs and limit mobility for smaller PoS operators.
What's your thoughts about this whole situation? It's a good thing to do and how will it affect the POS agents? Let's know your opinions in the comments section.
