The Central Bank of Nigeria (CBN) has issued a new directive requiring all Payment Service Providers to process Point of Sale (PoS) transactions through approved Payment Terminal Service Aggregators (PTSA).
This directive affects both physical and electronic PoS terminals across Nigeria, aiming to enhance transaction monitoring and decentralize the PoS operation process.
In a circular signed by Oladimeji Yisa Taiwo from the CBN’s Payments System Management Department, payment processors have been given a 30-day deadline to comply.
The directive mandates that all PoS transactions must be routed through PTSA entities licensed by the CBN. This move is expected to address concerns over the centralization of PoS operations while ensuring a more transparent and efficient payment system.
The CBN’s effort to regulate electronic transactions dates back to 2011 when the Nigeria Interbank Settlement System Plc was initially licensed as a PTSA.
This latest directive expands on that framework, making it compulsory for all payment processors to work with certified PTSA providers authorized by the CBN.
The circular clarified that “all PoS transactions, whether physical or electronic, must be routed through any CBN-licensed Payment Terminal Service Aggregator to ensure proper tracking and regulation.”
This directive follows the September 5th deadline for PoS agents to formally register their businesses with the Corporate Affairs Commission (CAC). Non-compliant PoS businesses are already facing shutdowns as the CAC intensifies its crackdown on unregistered operators.
These new regulations come amid growing concerns over fraud involving PoS terminals and are part of CBN’s broader effort to tighten financial regulations in Nigeria.
Recent measures also include restrictions on cryptocurrency trading and efforts to curb financial misconduct in the sector.
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