The Central Bank of Nigeria (CBN) has directed all Payment Service Providers to route transactions from Point of Sale (PoS) terminals, whether physical or electronic, through a CBN-approved Payment Terminal Service Aggregator (PTSA).
This directive, issued in a circular signed by Oladimeji Yisa Taiwo of the Payments System Management Department, gives service providers a 30-day deadline to comply with enhanced PoS routing guidelines.
The new guidelines aim to strengthen the monitoring of electronic transactions across the country and decentralize PoS transaction routing, addressing concerns over centralization under a single entity.
According to the CBN, this will ensure more transparency and better oversight of transactions.
The circular emphasized the requirement for all PoS transactions from merchant and agent locations to be routed through any CBN-licensed PTSA. It also mandates that PTSAs send transactions only to processors certified by the relevant Payment Scheme and licensed by the CBN. This initiative is part of the bank’s broader strategy to track electronic transactions more efficiently.
This move comes shortly after the expiration of the September 5th deadline for PoS agents to formally register their businesses with the Corporate Affairs Commission (CAC).
The CAC has begun cracking down on PoS businesses that failed to comply, following concerns about the high incidence of fraud involving PoS terminals.
A report from the Nigeria Inter-Bank Settlement System Plc revealed that PoS terminals accounted for 26.37% of fraud incidents in 2023.
The CBN’s directive also aligns with its efforts to curb the use of cryptocurrencies and virtual currencies, as it tightens control over Nigeria’s payment systems.
