PONIT-OF-SALE (PoS) merchants are currently kicking against the 60-day geo-tagging directive from the Central Bank of Nigeria, noting that it’s going to disrupt business operations for over 4.2 million agency banking operators across the country.
The apex bank has officially introduced the PoS system also known as agency banking in 2013, to achieve financial inclusion and develop a cashless economy.
However, having observed recurrent incidences of fraudulent businesses transactions in PoS operations, the CBN, on August 25, issued a directive for all PoS terminals to be geo-tagged within 60 days, effective August 26, 2025, with a deadline of October 20, 2025.
Geo-tagging is the process of adding geographic identification metadata, such as latitude and longitude, to digital content like photos, videos, websites, and SMS messages. This embedded location data allows content to be displayed on a map and correlated with other location-based information, enabling users to find items by location, track assets, or simply share their whereabouts.
The apex bank directive in geo-tagging states that all existing and new PoS devices must have native geolocation features and double-frequency GPS receivers.
According to CBN, devices must be registered with payment terminal service aggregators (PTSAs) and linked to their exact physical locations.
The policy stated that location data must be captured and included in the message payload for each transactions.
But the Acting Chairman of the Association of Mobile Money Bankers Association of Nigeria (AMMBAN), Obioha Oti, told The ICIR that the 60-days ultimatum for such policy directive has negative consequences on PoS merchants who serves as the last hope in areas not covered by commercial banking services.
“PoS merchants supports CBN’s geo-tagging to monitor fraudulent financial transactions, however, a matching order of a 60 day implementation is a problem.
“The geo-tagging is something that cannot just happen in a twinkle of an eye. We suggest to the CBN to embrace phase implementation of the policy to avoid disruption of over 4.2 million agency bankers,” he further said.
Oti expressed worry that the 60-day ultimatum could disrupt businesses for majority of operators many of whom are still finding their feet in the business, with low market share.
Citing an example with the harrowing experiences of small scale businesses in the recent naira redesign policy, he noted that PoS operation serves the remotest part of the country where commercial banks are non-existent.
“Even if the CBN decides to load more cash on various ATM points, it would not be able to cover the most rural areas, as ATMs are mostly located within urban and developed cities.
He also stressed the importance of stakeholders engagement for a successful implementation of the policy which he said, would facilitate broader financial inclusion and fraud tracking.
He further citied instances where over 40 per cent of PoS operators are not using Android, and will need to update their devices with necessary software instalments to meet the geo-tagging targets.
He noted that the government may need to thinker with the policy to accommodate businesses in transport value chain whose operations require movement from one location to the others beyond required 10 metres radius.
“Transport company use PoS as a means of reviewing payments from one location to the other in most intra-states businesses. Enforcement could be difficult in this case. We also have roaming PoS agents who work on specific markers days in in rural communities who might be affected. Such persons need to be given special concessions to avoid business disruption,” Otti added.
Incidences abound where PoS operators are used for fraudulent purposes.
The ICIR spoke with Maryann Ayoola, a POS operator in Abuja, who confirmed that occasional encounters with fraudulent customers seemed to outweigh the benefits of the agency banking business.
“Some of them will come and make transfers and most times they are in a haste. They usually download an app that will show you the transfer is successful on their phones. When you tell them to wait so you can get an alert, they start pleading with you to trust them.
“Believing that the transaction was successful from their phone, we end up giving them the money,” she said.
She told The ICIR that she had experienced this repeatedly, and expressed belief that the the geo-tagging could help in tracking fraudulent transactions in the agency banking business.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.