CBN Imposes One-Month Deadline for Dual PoS Connectivity to Strengthen Nigeria’s Payment Infrastructure

The Central Bank of Nigeria (CBN) has directed all financial institutions, acquirers and payment service providers to implement mandatory dual connectivity for Point of Sale (PoS) transactions within one month.

The directive, issued in a circular dated December 11, 2025 and signed by the Director of the Payments System Supervision Department, Rakiya Yusuf, reinforces the regulator’s effort to eliminate single-channel failures that frequently disrupt PoS transactions across the country.

CBN Orders Full Integration With NIBSS and UPSL

Under the updated framework, all acquirers, processors and Payment Terminal Service Providers must maintain active connectivity with both the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL).

The apex bank said the dual-link requirement will reduce reliance on any single aggregator and improve system stability. It also upgrades an earlier guideline introduced in September 2024.

Automatic Failover Now Mandatory for PoS Transactions

To strengthen transaction reliability, the CBN ordered that PoS routing systems must be configured to automatically switch between NIBSS and UPSL whenever one network experiences downtime. This automatic failover will now serve as a standard benchmark for the electronic payments industry.

The regulator also mandated periodic redundancy and failover testing. NIBSS and UPSL are required to work closely with banks and other regulated entities to validate system readiness and ensure seamless service delivery.

Stricter Downtime Reporting for Payment Infrastructure

The new circular introduces tougher reporting obligations for aggregators. NIBSS and UPSL must immediately notify financial institutions of any service disruption and submit a detailed incident report to the Payments System Supervision Department within 24 hours. Each report must explain the cause, duration and corrective measures taken.

Deadline Set for Mid-January 2026

The CBN stated that all banks and payment service providers must complete their dual-integration processes, testing and configuration before mid-January 2026.

The directive forms part of the apex bank’s broader strategy to improve electronic payment reliability, enhance consumer confidence and support Nigeria’s fast-growing digital-payments market.

Background: Geo-Tagging, ISO 20022 and Agent-Banking Rules

The CBN stated that the current directive aligns with several earlier policies, including:

1. Mandatory geo-tagging of all PoS terminals announced on August 25, 2025.
   Existing PoS devices were given 60 days to comply, while new devices must be tagged before activation.
2. Implementation of ISO 20022 messaging standards for payment transactions.
3. Enforcement of geolocation and geofencing requirements limiting terminal movement to about 10 metres from registered locations.
4. Compliance checks scheduled from October 20, 2025, with non-compliant terminals subject to deactivation.
5. Stricter regulation on agent banking, including a minimum penalty of ₦5 million and ₦300,000 daily fines for continued non-compliance.
6. Extension of the enforcement deadline for location and exclusivity rules to April 1, 2026.

The CBN emphasised that these measures aim to strengthen the digital-financial ecosystem, curb fraud, improve transparency and boost confidence in Nigeria’s electronic payment infrastructure.