The Central Bank of Nigeria (CBN) has directed fintechs and commercial banks to equip all Point-of-Sale (PoS) terminals with GPS tracking systems ahead of the October 31st compliance deadline, in a bid to strengthen the monitoring of electronic transactions. The move forms part of broader regulatory measures designed to curb rising cases of fraud, kidnapping, ransom collection & laundering and enhance transaction security within the financial ecosystem.
In addition to geo-tagging, payment companies have also been instructed to provide detailed reporting of payer and payee identifiers, as well as merchant and agent identifiers, ensuring greater transparency and accountability across Nigeria’s fast-growing digital payments sector.
The Central Bank of Nigeria (CBN) has ordered banks, fintechs, and payment operators to install GPS tracking on all Point-of-Sale (PoS) machines. In a circular signed by Rakiya Yusuf, CBN’s director of payment system supervision, the bank said every PoS device must now have geo-location services with double-frequency GPS for accurate tracking. Operators must also register each terminal with a payment aggregator and submit the correct business location of agents or merchants.
Why is CBN Giving this New orders that may Affect PoS Agents and Operators
CBN gave a 60-day deadline for existing terminals to be Geo-tagged, while new ones must be tagged before activation. The move comes as PoS usage surges nationwide, with many Nigerians depending on agents due to limited bank branches and unreliable ATMs. But fraud linked to PoS agents has also grown, and security officials say criminals sometimes use nearby PoS operators to hide ransom payments.
Other CBN Instructions to Banks and Fintech Payment Companies
The regulator also told payment companies to adopt ISO 20022, a global standard for transaction messages, by October 31, 2025. All PoS machines must run on Android 10 or higher to connect with Nigeria’s National Central Switch, which will monitor Geo-location and block devices outside their registered areas. By this deadline, all operators must ensure transactions carry full payer, payee, and agent details for better tracking and security.
There will be more PoS Transaction with this directives
PoS transactions in Nigeria keep rising. According to NIBSS, the value of transactions hit N18.1 trillion in 2024, a 69% jump from N10.7 trillion in 2023, driven by rapid expansion from fintech operators.
How will PoS Geo-Tagging Help Agents and Customers?
Using the Nigerian factor with high fraud and kidnapping for ransom cases, how will PoS Geo-tagging and location tracking help agents and customers?
PoS Geo-tagging and location tracking can greatly improve safety for both agents and customers in Nigeria. Today, fraudsters often move PoS terminals from one area to another, making it hard for regulators and security agencies to trace suspicious activity. With Geo-tagging, every PoS machine is tied to a fixed, registered location. This means that if a criminal tries to use it elsewhere, the system will block it immediately. For agents, this builds more trust with customers, because people can be sure the machine they’re paying through is genuine and traceable.
For kidnappings and ransom cases, Geo-tagging adds an extra layer of security. In many incidents, kidnappers force victims’ families to pay through PoS agents nearby to avoid detection. With location tracking, law enforcement can quickly identify the exact PoS terminal and where it was used, making it easier to trace suspicious payments and track down criminals.
Customers also benefit because it reduces fake or cloned PoS machines that steal card details. When only verified, Geo-tagged machines are allowed to operate, people are less exposed to fraud. In the long run, the system will encourage transparency, strengthen financial security, and protect both agents and customers from criminal exploitation.
How will GPS Tracking on POS prevent the popular “one chance” robbery in cities where they use PoS machine and withdraw victims cash on gun point?
The “one chance” robberies where criminals force victims inside vehicles and make them transfer or withdraw money via PoS agents are a real Nigerian urban threat. Here’s how Geo-tagging and tracking can help reduce it:
Fixed Location for Every PoS Operator
With geo-tagging, every PoS terminal is tied to one registered location. If criminals try to move it into a vehicle for “one chance” operations, the system will immediately lock it out. This means they cannot keep using mobile or “floating” PoS machines across the cit
Traceable Transactions with Operator’s Fix Location
When a PoS is used under duress, law enforcement can trace the exact registered location and the agent behind the machine. This helps investigators track the fraud trail quickly and hold criminals or collaborators accountable.
Reduced Collaboration with Rogue Agents that Launders Money
Many “one chance” cases rely on compromised PoS agents working with criminals. With the CBN’s new rule, only licensed, Geo-tagged, and GPS-enabled devices can work, making it harder for fake or ghost agents to operate under the radar.
Better Monitoring by Security Agencies
Since all PoS activity will be logged with location metadata, security agencies can detect abnormal patterns — e.g., repeated high-value withdrawals from the same area at odd hours — and intervene faster.
Customer Confidence in case of Failed Transactions
Victims of “one chance” will know that any forced PoS transaction leaves a clear digital footprint. While the robbery itself may still happen, criminals will have fewer safe channels to move stolen money without being traced.
In short, Geo-tagging and PoS Tracking won’t completely stop “one chance” robberies (since the attack itself is physical), but it makes it much riskier for criminals to rely on PoS machines as their cash-out method. Over time, this can push down such crimes because the financial trail will always point back to them.
