CBN Directs PoS Providers to Link with NIBSS, UPSL

The Central Bank of Nigeria (CBN) has directed all acquirers, processors, and Payment Terminal Service Providers (PTSPs) to implement mandatory dual connectivity with the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL) for Point of Sale (PoS) transactions within one month.

The apex bank announced the directive in a December 11, 2025, memo signed by the CBN’s director of the payments system supervision department, Rakiya Yusuf.

The Corporate Affairs Commission (CAC) already plans to commence a nationwide clampdown on unregistered PoS agents effective January 1, 2026, as part of fresh efforts to curb money laundering in the country.

The commission directed all operators to regularise their businesses before Jan. 1, 2026.

The commission said the directive became necessary following the rising number of PoS operators conducting business without registration, which it said violates the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria (CBN) Agent Banking Regulations.

The CAC described the trend as a reckless practice often enabled by some fintech companies.

This, it said, poses significant risks to the country’s financial system and the investments of citizens.

It said that beginning Jan. 1, 2026, no PoS operator would be allowed to operate without CAC registration, adding that security agencies have been mandated to enforce full compliance nationwide.

“Unregistered PoS terminals will be seized or shut down by security officials. Fintechs enabling illegal operations will be placed on the watch list and reported to the CBN.

“All operators are advised to regularise immediately, and compliance is mandatory,” the statement said.

The commission reaffirmed its commitment to ensuring orderliness within the sector.

It said the directive aligned with broader efforts to sanitise the financial services space and strengthen regulatory compliance for the protection of users and investors.

It added that the enforcement drive underscored its resolve to promote transparency, safeguard the economy, and deliver prompt and efficient services in line with its mandate.