All Payment Service Providers have been directed by the Central Bank of Nigeria (CBN) to direct Point of Sale (PoS) transactions from their respective merchants and agents through the approved Payment Terminal Service Aggregator. The intention of this step is to improve monitoring of electronic payments within Nigeria and make PoS transaction routing more decentralized.
In a circular signed by Oladimeji Yisa Taiwo on behalf of the Payments System Management Department, the bank noted that from now on, all PoS transactions must be processed through any CBN-licensed Payment Terminal Service Aggregator. It emphasized the importance of using only processors authorized by the relevant Payment Scheme and nominated by the Acquirer to whom they are accredited.
This follows the expiration of the September 5th deadline for PoS agents to register and conduct business with the Corporate Affairs Commission (CAC). Furthermore, the CBN seeks to address issues surrounding fraud cases involving PoS terminals and determine if virtual forms of money are regulated.
Reports show that in 2023, PoS devices accounted for 26.37% of fraud incidents. The CBN has given Payment Service Providers a 30-day deadline to comply
