The Central Bank of Nigeria (CBN) has directed that all Point of Sale (POS) transactions in the country must now be routed through its licensed Payment Terminal Service Aggregators (PTSAs), specifically Nigeria Interbank Settlement System Plc (NIBSS) and Unified Payment Services Limited (UPSL). This new regulation is aimed at ensuring the standardization of POS devices, improving the consistency of transaction functionality, and enhancing the tracking of electronic payments across Nigeria.
This directive was conveyed in a circular signed by the Director of Payments Systems Management Department, Oladimeji Taiwo. The circular stated that Payment Service Providers (PSPs) must update their systems to comply with the new routing requirements and route all POS transactions through NIBSS and UPSL. PSPs have been given 30 days from the date of the circular to regularize their operations and notify the CBN of their compliance.
This move follows CBN’s decision in August 2011 to issue a Payment Terminal Service Aggregator (PTSA) licence to NIBSS as part of efforts to track electronic transactions in Nigeria. In April 2024, the CBN granted a second PTSA licence to Unified Payment Services Limited (UPSL) to mitigate concerns regarding reliance on a single aggregator for POS transactions.
With this dual-aggregator system, the CBN aims to strengthen the country’s payment infrastructure, enhance transaction security, and streamline electronic payment services.
