The Central Bank of Nigeria (CBN) has introduced stricter measures to regulate agent banking operations across the country, mandating geo-tagging (or geo-fencing) of Point of Sale (PoS) terminals and setting a minimum penalty of N5 million, plus N300,000 per day for continuous non-compliance.
According to a circular (PSP/DIR/CON/CWO/001/049) dated October 6, 2025, and signed by Musa I. Jimoh, Director of Payments System Policy, the CBN said the new guidelines take effect immediately. However, enforcement of agent location and exclusivity requirements will begin on April 1, 2026, allowing operators time to comply.
What the new guideline says
Under the new rule, all PoS terminals must be geo-locked to their registered premises, meaning devices can only function within defined locations. Any PoS terminal used outside its approved area will attract penalties. Principals and super agents must ensure these controls are active.
In addition, principals are required to publish and maintain updated registers of their agents both online and in physical branches while super agents must have at least 50 agents spread across Nigeria’s six geopolitical zones at any given time.
If an agent relocates, transfers, or closes an outlet, written approval is mandatory, along with a 30-day public notice displayed at the agent’s location for customer awareness.
The CBN warned that persistent violations could cost operators tens of millions of naira, and further regulatory sanctions such as delisting, suspension, or blacklisting could follow.
Other outlined penalties target late reporting, improper agent conduct, fraud, unapproved activities, and failure to maintain proper agent records or accounts.
What you should know
This directive builds upon earlier CBN actions. On August 25, 2025, the regulator mandated that all existing PoS terminals be geo-tagged within 60 days, and new devices must be tagged before activation.
That earlier circular also introduced ISO 20022 messaging for payments and required devices to support geolocation and geofencing—restricting operational range to approximately 10 metres from registered business addresses. PoS terminals that fail compliance tests starting October 20, 2025, risk deactivation.
A 9am News report gathered that fintech operators and PoS issuers are preparing for potential service disruptions and income losses as the initial October 31 deadline for full geo-tagging approaches. With over 8.3 million registered PoS terminals nationwide and 5.9 million already deployed as of March 2025, the compliance effort is extensive and resource-demanding.
Although the extension to April 2026 offers breathing space, the CBN has made it clear that enforcement will be uncompromising. Non-geo-locked terminals may be shut down, and both agents and institutions could face severe fines.
For merchants and agents, the directive could limit the mobility of PoS services, forcing a return to fixed-location operations. Operators—especially smaller firms—will need to upgrade firmware, acquire GPS-enabled devices, and integrate with CBN platforms like CARDS.
Industry experts believe that many new PoS terminals already come with inbuilt GPS modules, so a software reconfiguration might be sufficient, reducing the need for complete hardware replacement.
As the digital payment ecosystem continues to evolve, these regulations reflect the CBN’s intent to tighten security, improve accountability, and promote transparency within Nigeria’s fast-growing agent banking network.
Stay tuned to 9am News Nigeria for more Breaking News, Business News, Sports updates And Entertainment Gists.
