CBN will lock out POS Machines operating outside registered location to track fraud & kidnapping if you do not comply with Geo-Tagging of POS Terminals. POS Operators are to operate within 10 metres of the registered business address only. The Central Bank of Nigeria (CBN) is tightening control over the country’s booming Point-of-Sale (PoS) industry. In a new directive released on August 25, 2025, the apex bank ordered commercial banks, fintechs, and payment operators such as Moniepoint, OPay, PalmPay, and others to geo-tag all active PoS terminals within 60 days.
In simple terms, every PoS machine will now be tied to one physical location. If a device is moved outside its registered spot, it will be shut down automatically. This new rules for banks and fintech companies will help to reduce fraud. The geo-tagging system will disable any PoS machine used outside its registered location. This directive, which takes effect from October, is expected to impact more than 4 million PoS devices and 1.5 million agents nationwide.
CBN says this measure is meant to fight fraud, stop cloned or ghost terminals, and improve transaction monitoring in real time. Security agencies will also be able to easily track suspicious activities through the geo-tagging system.
What the New PoS Rule Means: Who will be locked out of their Machine?
According to the CBN circular for Geo-Tagging of POS Terminals.:
- GPS-enabled PoS only → All machines must come with GPS technology.
- Location restrictions → Transactions will only work within 10 metres of the registered business address.
- Deadline → Any device not tagged by October 20, 2025, will be disabled.
- New terminals → Must be geo-tagged before activation.
- Responsibility → Payment Terminal Service Providers (PTSPs), mobile money operators, and commercial banks will be held accountable for compliance.
With more than 4 million PoS machines scattered across Nigeria, industry insiders say operators have just two months to carry out one of the largest compliance upgrades in Nigeria’s financial sector.
Why PoS Machines Matter in Nigeria
PoS machines have become a lifeline for millions of Nigerians, especially in rural and urban communities where bank branches are limited.
- By 2023, Nigeria had about 1.5 million PoS agents, roughly one for every 80 Nigerians.
- PoS businesses provide easy access to cash withdrawals, deposits, transfers, and bill payments.
- Their popularity has grown so fast that the CBN has had to introduce stricter oversight rules to reduce fraud and ensure transparency.
The new geo-tagging directive is one more attempt to bring tighter control over the sector, which has seen a surge in fraud cases in recent years.
Nigerians Spent Over N14 Trillion via PoS in 2024: More income for Operators
The rise of PoS transactions shows just how vital the industry has become.
Data from the Nigeria Interbank Settlement System (NIBSS) shows that:
- PoS transactions hit N14.86 trillion in the first 10 months of 2024.
- That’s a 38.27% jump from the N10.74 trillion recorded in the same period of 2023.
- Compared to 2022’s N8.39 trillion, it’s a 77.11% increase in just two years.
This growth is driven by convenience, accessibility, and trust in PoS operators, making them one of the strongest drivers of Nigeria’s cashless economy.
Why Geo-Tagging PoS terminals is such a big deal in fraud prevention:
Geo-tagging locks PoS devices to a specific location, which makes it harder for fraudsters to hide, move around, or operate ghost networks — while giving regulators clear visibility and traceability over transactions.
Stops “ghost” terminals
Some fraudsters register PoS machines with fake details, then move them around the country to carry out scams. Geo-tagging ties each machine to a specific physical location, making it much harder to run anonymous or untraceable operations.
Prevents relocation fraud
Many fraud cases involve agents who move PoS devices between states or towns to disguise suspicious transactions. With geo-tagging, if the device leaves its approved location, it’s automatically blocked.
Tracks criminal networks
Because each machine is logged with exact GPS coordinates, security agencies can quickly trace fraudulent transactions back to the exact shop or street where they happened. POS operators who helps kidnappers to launder ransom money can be tracked effortlessly.
Blocks cloned machines
Some scammers use cloned or “copied” PoS terminals to siphon money. Geo-tagging ensures that only registered, location-verified machines can connect to the payment network.
Improves transaction monitoring
Banks and regulators can now see unusual activity patterns (e.g., a PoS that suddenly moves across states or processes abnormal transaction volumes) and flag them in real time.
Protects customers
For everyday Nigerians, it reduces the chances of being defrauded through illegitimate PoS agents, since every machine must now be linked to a verifiable business address.
Conclusion
The CBN’s new geo-tagging rule could mark a turning point for Nigeria’s PoS industry. On one hand, it may improve security, reduce fraud, and boost trust in digital payments. On the other hand, some agents may struggle with compliance, especially those who rely on moving machines across multiple business locations.
For now, all eyes will be on October 20, 2025, the date when non-compliant devices will be switched off.
One thing is clear: as Nigerians increasingly embrace PoS transactions, regulation will only get tighter to keep pace with the industry’s massive growth.
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