The Central Bank of Nigeria (CBN) has introduced some measures targeted at checking the unwholesome practices of some point of sale (PoS) service providers in the country.

The Nigeria Inter-Bank Settlement System (NIBSS) Plc reported that PoS terminals accounted for 26.37 per cent of fraud incidents in 2023. To mitigate these unwholesome practices, the CBN has directed all Payment Service Providers to route all transactions from PoS terminals at merchant and agent locations through an approved CBN Payment Terminal Service Aggregator.

The apex bank gave this directive in a circular signed by Oladimeji Yisa Taiwo on behalf of the CBN’s Payments System Management Department yesterday. The bank also issued a 30-day deadline requiring service providers to comply with the enhanced routing guidelines for PoS.

This move according to the CBN is to strengthen the monitoring of electronic transactions across Nigeria and decentralise PoS transaction routing, addressing concerns about the centralisation of such transactions under a single entity.

It said that all PoS transactions from merchant and agent locations must now be routed through any CBN-licensed PTSA. According to the circular, “To achieve the objective of tracking electronic transactions in Nigeria, the Central Bank of Nigeria, in August 2011, granted a Payment Terminal Service Aggregator licence to Nigeria Interbank Settlement System Plc.

“In furtherance of the above, the CBN hereby directs acquirers to route all transactions from PoS terminals at merchant and agent locations, whether on physical or electronic PoS terminals, through any CBN-licensed Payment Terminal Service Aggregator.

“PTSAs are required to send PoS transactions to only processors certified by the relevant Payment Scheme, nominated by the Acquirer, and licensed by the CBN.”