The Central Bank of Nigeria (CBN) has mandated all Payment Service Providers to ensure that transactions from Point of Sale (PoS) terminals, both at merchant and agent locations, are routed through an approved CBN Payment Terminal Service Aggregator.
In a circular published on Thursday, the CBN outlined a 30-day timeline for compliance with the new routing guidelines. This directive is aimed at enhancing the monitoring and management of electronic transactions across the country.
The CBN stressed that the move will strengthen the nation’s transaction tracking and administrative capabilities, as part of broader efforts to improve transparency and efficiency in the financial system.
The circular read, “To achieve the objective of tracking electronic transactions in Nigeria, the Central Bank of Nigeria, in August 2011, granted a Payment Terminal Service Aggregator licence to Nigeria Interbank Settlement System Plc. In furtherance of the above, the CBN hereby directs acquirers to route all transactions from PoS terminals at merchant and agent locations, whether on physical or electronic PoS terminals, through any CBN-licensed Payment Terminal Service Aggregator.”
“PTSAs are required to send PoS transactions to only processors certified by the relevant Payment Scheme, nominated by the Acquirer, and licensed by the CBN.”
This development follows the expiration of the 5th September deadline for PoS agents to formally register their businesses with the Corporate Affairs Commission.
Although the directive was challenged in court, the CAC recently announced that it has commenced taking drastic actions, including shutting down PoS businesses that failed to register.
The directive on PoS business registration comes against the backdrop of frequent fraud incidents involving PoS terminals and the Central Bank of Nigeria’s plans to prevent trading in cryptocurrency or virtual currency.
According to a report by Nigeria Inter-Bank Settlement System Plc, PoS terminals accounted for 26.37% of fraud incidents in 2023.
