The Central Bank of Nigeria (CBN) has instructed all Payment Service Providers to route transactions from Point of Sale (PoS) terminals through approved CBN Payment Terminal Service Aggregators.
This new rule, effective within 30 days, aims to improve the tracking of electronic transactions and reduce the concentration of PoS transaction management under a single entity.
The CBN’s Payments System Management Department issued a notice, signed by Oladimeji Yisa Taiwo, stating that PoS transactions must go through any CBN-licensed Payment Terminal Service Aggregator (PTSA).
The directive also mandates that PTSA must route transactions to processors certified by the relevant Payment Scheme and licensed by the CBN.
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 update follows the recent deadline for PoS agents to register their businesses with the Corporate Affairs Commission (CAC), which has begun enforcing compliance by shutting down unregistered PoS businesses.
The move is part of the CBN’s efforts to address fraud associated with PoS terminals and prevent cryptocurrency trading.
A report from Nigeria Inter-Bank Settlement System Plc revealed that PoS terminals were involved in 26.37% of fraud cases in 2023.
