CBN Sets New Rules for POS Operators: ₦1.2 Million Limit, Geo-Fencing, and ISO 20022 Compliance
The Central Bank of Nigeria (CBN) has released new guidelines for Point-of-Sale (POS) operations in the country. The directive, issued in August 2025, introduces a ₦1.2 million daily transaction limit for POS agents, mandatory geo-tagging of all POS devices, and a system-wide migration to the ISO 20022 payment messaging standard.
According to the circular, all banks, payment service providers, and financial institutions must fully adopt the ISO 20022 standard by October 31, 2025. The new standard is designed to improve payment data structure, enhance fraud detection, and ensure compatibility with international financial systems.
The CBN also directed that all POS terminals in use must be geo-tagged with their exact GPS coordinates. This means that each device will be restricted to operate within a defined radius of its registered location. The move is aimed at reducing fraudulent transactions and preventing the unauthorized movement of POS devices between locations.
Payment terminal service providers and aggregators are required to ensure that all existing POS terminals are geo-tagged within 60 days of the circular’s release. New devices must be tagged before activation and certification.
The guidelines further introduce a ₦1.2 million daily transaction cap for POS agents, with a ₦100,000 limit per customer per day. These limits are intended to regulate transaction volumes and improve monitoring across the payment system.
To meet the new technical standards, all POS devices are expected to run on Android 10 or higher to support location tracking and integration with the National Central Switch. Devices that do not meet the requirements will be deactivated after the compliance deadline.
The CBN stated that all payment service providers must submit detailed monthly reports to the regulator, showing updated terminal data and transaction summaries. Institutions that fail to comply with the directive by the deadline risk sanctions, suspension, or disconnection from the payment network.
The implementation of the new POS rules is part of the CBN’s effort to strengthen digital payment security, improve transaction transparency, and align Nigeria’s financial system with global operational standards.;;
