Fintechs Brace for Losses as CBN Enforces PoS Geo-Tagging Deadline
The Central Bank of Nigeria (CBN) has given payment operators just 60 days to geo-tag all Point-of-Sale (PoS) terminals across the country, a move aimed at tightening oversight and curbing fraud in the fast-growing payments sector. But as the October 20, 2025 deadline approaches, fintechs, service providers, and PoS agents fear disruptions that could shake the foundations of Nigeria’s N10.5 trillion PoS economy.
What Geo-Tagging Means for PoS Terminals
According to the CBN directive, every PoS device must now be equipped with double-frequency GPS receivers and native geolocation support. Each terminal must be registered with precise coordinates, verified by a Payment Terminal Service Aggregator (PTSA). More importantly, every transaction will capture and transmit location data at initiation, with a tolerance of only 10 metres from the registered address.
Any terminal that cannot meet these requirements by the deadline will be deactivated. New PoS devices will only be certified if they come with geo-tagging features built in.
Why the CBN Is Pushing This Policy
The central bank argues that the policy is designed to curb fraud, eliminate ghost terminals, and improve traceability across the payments ecosystem. By geo-tagging PoS machines, regulators gain real-time visibility into where devices are being used and can flag suspicious activity faster.
It also aligns Nigeria with global best practices, including migration to ISO 20022, the international messaging standard for payments. Together, these measures are expected to boost consumer confidence, improve data quality, and strengthen oversight of digital financial services.
Why Operators Are Worried
For operators, the biggest challenge is time and cost. There are millions of PoS devices in circulation, many of them older models that lack the required hardware. Upgrading or replacing them will be expensive and logistically complex.
Payment Terminal Service Providers (PTSPs) must also deploy teams nationwide to verify the GPS coordinates of agents, a task made harder by Nigeria’s rural and underserved regions where connectivity is weak.
Fintechs and PoS agents say the 60-day timeline is unrealistic. If the CBN enforces the rules strictly, large numbers of terminals may be shut down overnight. That could lead to income losses for agents, service disruptions for merchants, and reduced financial access for consumers who rely heavily on PoS transactions.
Risks to Financial Inclusion
The ripple effects could be severe. PoS networks have become the backbone of financial access for millions of Nigerians, particularly in areas with few bank branches. Forcing older terminals offline risks pushing communities back into cash dependency, undermining recent gains in financial inclusion.
The cost burden is another concern. If fintechs and PTSPs are forced to absorb the expense of upgrades, many may pass those costs on to agents and merchants. That could translate to higher fees for consumers, dampening adoption and trust.
A Policy with Promise, but Fragile Execution
On paper, the policy is a necessary step. Fraud and abuse in the PoS ecosystem have risen in recent years, and better monitoring tools are overdue. However, execution is where the CBN faces its biggest test.
If rolled out too quickly, the directive could cause more harm than good by sidelining thousands of agents and destabilizing transaction flows. A phased approach, combined with support for operators and clear technical guidance, may deliver the intended benefits without jeopardizing financial access.
For now, the industry is racing against the clock. By October 20, millions of devices must be tagged, tested, and certified, or risk being switched off. What happens in the coming weeks could reshape Nigeria’s payments landscape for years to come.
