The Central Bank of Nigeria (CBN) has mandated that all Payment Service Providers must route transactions from Point of Sale (PoS) terminals at merchant and agent locations—both physical and electronic—through a CBN-approved Payment Terminal Service Aggregator (PTSA). This directive, which includes a 30-day compliance window, aims to improve the monitoring and decentralization of PoS transactions across the country, addressing concerns about the centralization of such activities under a single entity.
In a circular signed by Oladimeji Yisa Taiwo of the CBN’s Payments System Management Department, the bank emphasized that all PoS transactions must now be processed through any PTSA licensed by the CBN.
The circular stated, “To enhance the tracking of electronic transactions in Nigeria, the Central Bank granted a PTSA license to the Nigeria Interbank Settlement System Plc in 2011. In line with this, the CBN now directs acquirers to route all PoS transactions from merchant and agent locations through a licensed PTSA.”
Additionally, the circular outlined that PTSAs are only to process transactions through certified and licensed payment processors nominated by the acquiring bank.
This directive comes shortly after the September 5th deadline for PoS agents to register their businesses with the Corporate Affairs Commission (CAC), a move aimed at curbing fraud and ensuring proper oversight. The CAC has begun taking action, including shutting down unregistered PoS businesses. This is part of broader efforts by the CBN to combat fraud and regulate activities linked to cryptocurrency trading.
According to the Nigeria Inter-Bank Settlement System Plc, PoS terminals were linked to 26.37% of fraud cases in 2023, further underscoring the need for tighter regulatory measures.