CBN has imposesd a tougher sanctions on PoS Operators and set ₦5 million minimum fine for non-compliance.
NewsOnline Nigeria reports that the Central Bank of Nigeria (CBN) has announced stricter regulations for agent banking operators, mandating geo-tagging of all Point of Sale (PoS) terminals and setting a minimum fine of ₦5 million for violations, alongside an additional ₦300,000 daily penalty for continued non-compliance.
The new directive, contained in a circular (PSP/DIR/CON/CWO/001/049) dated October 6, 2025, and signed by Musa I. Jimoh, Director of Payments System Policy, introduces tighter compliance measures to improve transparency in Nigeria’s expanding PoS ecosystem and strengthen the nation’s financial inclusion drive.
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While the circular takes immediate effect, the CBN has extended the deadline for enforcing the new “agent location” and “agent exclusivity” rules to April 1, 2026, allowing operators more time to comply.
Under the revised framework, all PoS terminals must be geo-locked to their registered business premises. Any device operating outside its designated area will face regulatory sanctions. Financial institutions and super agents are required to ensure full compliance, maintain updated agent registers (both online and in branches), and obtain written approval before relocating, transferring, or closing an agent outlet.
Super agents must also maintain a nationwide presence, with at least 50 active agents across Nigeria’s six geopolitical zones. Additionally, any relocation must be publicly announced with a 30-day notice displayed at the affected location.
Operators that fail to comply for extended periods could face penalties amounting to tens of millions of naira before further disciplinary actions such as suspension, blacklisting, or delisting are enforced.
Other violations listed in the new guideline include late report submission, agent misconduct, fraud, unauthorized activities, and poor record-keeping — all of which will attract heavy sanctions.
The policy builds on an earlier CBN directive issued on August 25, 2025, which required all PoS terminals to be geo-tagged within 60 days and mandated geolocation and geofencing support for new devices, restricting operations to a radius of approximately 10 metres from registered addresses.
With over 8.3 million registered PoS terminals nationwide and 5.9 million already deployed as of March 2025 — compliance will pose significant logistical and financial challenges for operators, especially smaller fintechs.
While the extension to April 2026 offers temporary relief, the CBN has made it clear that enforcement will be uncompromising. Terminals that fail to meet the new geo-tagging standard risk deactivation, while non-compliant operators will face steep fines and possible suspension.
Industry experts believe that while many newer PoS devices already contain GPS capabilities, operators will still need to invest in software upgrades, location-aware systems, and integration with the CBN’s regulatory platforms to stay operational under the new regime.
