In Nigeria today, many people no longer need to go to the bank for simple transactions. Instead, they use Point of Sale (PoS) machines at small shops, kiosks, or by the roadside. With PoS, you can withdraw cash, send or receive money, pay bills, and buy airtime. This service has grown so fast that millions of Nigerians now depend on it daily.
But with this growth also came problems. There are many cases of fraud, fake PoS machines, and agents moving their machines around in a way that makes it hard to trace them. Because of this, the Central Bank of Nigeria (CBN) introduced a new policy called PoS geo-tagging.
This article explains what PoS geo-tagging is, the background story behind it, the deadline for all agents, and how the Federal Government is carrying it out — in the simplest English possible.
What is PoS Geo-Tagging?
PoS geo-tagging means that every PoS machine in Nigeria must be connected to its exact location using GPS (Global Positioning System).
Think of it like giving every PoS shop a digital address. Once a PoS is geo-tagged, the CBN and banks can know the exact place where that machine is being used.
Why Is Nigeria Doing PoS Geo-Tagging? (Background Story)
The idea did not come out of nowhere. Here’s the story:
1. Too many fraud cases
Some people use cloned PoS machines or hide their location to carry out scams. Victims often find it hard to trace them.
2. PoS machines registered in one place, used in another
Many agents register their PoS in Lagos, Abuja, or Port Harcourt but then move to another town or even village to use it. This makes it very hard to regulate.
3. Overcrowding in cities, lack in rural areas
Some urban areas have hundreds of PoS agents, while remote villages have none. The CBN wants to spread the service fairly across Nigeria.
4. Financial inclusion
The government wants every Nigerian, no matter where they live, to have easy access to financial services. Geo-tagging helps them know where services are missing.
Because of all these issues, the CBN released a circular in August 2025 making it compulsory for every PoS terminal to be geo-tagged.
The Deadline for PoS Geo-Tagging
The CBN gave strict deadlines:
✅Existing PoS terminals: They must be geo-tagged within 60 days of the circular (from August 25, 2025).
✅New PoS terminals: They cannot be used at all until they are geo-tagged.
✅Compliance checks: Starting from October 20, 2025, the CBN will begin checking all devices.
✅Final deadline: By October 31, 2025, every PoS terminal must be fully compliant.
Any machine that does not meet these rules can be shut down or blocked.
How the Government Is Carrying Out PoS Geo-Tagging
The Federal Government, through the CBN and the Nigerian Interbank Settlement System (NIBSS), is using a step-by-step plan:
1. New rules for all operators
Banks, fintech companies, and mobile money operators must ensure that every PoS terminal they manage has built-in GPS.
2. Technical requirements
➡️PoS machines must have native GPS tracking.
➡️They must support double-frequency GPS receivers for more accurate location.
➡️They must run on Android 10 or higher so they can install the right apps.
➡️The machines must have geofencing software, which ensures that the PoS works only within about 10 meters of the registered business address.
3. Registration with central bodies
➡️Every PoS terminal must be registered with a Payment Terminal Service Aggregator (PTSA), showing its exact latitude and longitude.
➡️The device must also be certified by the National Central Switch (NCS), managed by NIBSS, before it can work.
4. Enforcement and penalties
➡️From October 20, 2025, regulators will start checking terminals.
➡️Any PoS that is not geo-tagged, or is used outside its registered location, may be deactivated.
What This Means for PoS Agents
For PoS business owners, here are the effects:
✅Advantages:
➡️Customers will trust you more since your PoS is verified.
➡️Fraud will reduce, protecting honest agents.
➡️Banks may give better support since your location is confirmed.
⚠️ Disadvantages:
➡️Agents without proper registration may lose their business.
➡️You cannot move your PoS far from your shop without risking deactivation.
➡️You may need to upgrade your machine if it does not meet the new requirements.
The PoS geo-tagging exercise is not meant to punish agents but to make the system safer, fairer, and more reliable. By linking each machine to its real location, fraud can be reduced, customers will have more trust, and banking services can spread better across Nigeria.
The important thing for agents is to act before the October 31, 2025 deadline. Otherwise, they risk being cut off from the system.
In simple terms: PoS geo-tagging is like giving every PoS business in Nigeria a digital home address.