…Apex Bank Enforces ISO 20022 Global Standard
The Central Bank of Nigeria (CBN) has issued a fresh directive to commercial banks, microfinance banks, mobile money operators, and other licensed players in the country’s payments ecosystem, mandating full migration to the ISO 20022 standard for payment messaging by October 31, 2025.
ISO 20022 is a globally recognised format for financial transactions, covering payments, securities, trade services, cards, and foreign exchange.
The move aligns Nigeria’s financial system with SWIFT’s global migration timeline.
Deadline for Geo-Tagging Payment Terminals
In a circular signed by Rakiya Yusuf, Director of the Payments System Supervision Department, the CBN directed that all existing payment terminals must be geo-tagged within 60 days, while new terminals must be geo-tagged before certification and activation.
“All payment terminals must be registered with a Payment Terminal Service Aggregator (PTSA), with accurate latitude and longitude coordinates showing the merchant or agent’s place of business,” the apex bank stated.
New Rules for PoS Machines and Applications
The new directive also requires all Point-of-Sale (PoS) terminals and applications to be certified by the National Central Switch.
In addition, each terminal must integrate a geolocation monitoring and geofencing software development kit (SDK).
Other requirements include:
Android v10 as the minimum operating system.
A 10-meter radius as the permitted geofence for all merchant activity.
Payment terminals not routed through a PTSA will not be allowed to process transactions.
Banks Welcome Policy but Ask for Support
Some commercial banks have described the directive as a necessary step to curb rising fraud in the payments ecosystem.
A senior official at one of the tier-one banks in Lagos, who preferred anonymity, told Radio Nigeria that while the directive was laudable, the 60-day compliance window may be “too tight.”
“We welcome the move, but upgrading thousands of terminals across the country, especially in rural areas, will require significant cost and logistics. We urge the CBN to provide transitional support,” the banker said.
Fintechs Raise Concerns Over Cost
On their part, fintech operators and mobile money providers expressed concerns about the financial burden the directive may place on smaller players.
A spokesperson for a fintech association noted that, while standardisation is important, many operators may struggle to upgrade to Android v10 devices and install the SDK.
“If not carefully managed, this could lead to service disruptions, especially for agents in remote areas,” the spokesperson warned.
Consumer Groups Applaud Move
However, consumer rights advocates have welcomed the directive, describing it as a bold step to protect Nigerians from fraud and failed transactions.
The National Association of Nigerian Consumers (NANC) said geo-tagging would bring greater transparency, as it will be easier to trace fraudulent agents and merchants.
“Many Nigerians have lost money through fake PoS operators. With geofencing, it will be harder for criminals to hide. This is a win for consumers,” the group stated.
CBN Stands Firm on Deadline
The CBN has, however, maintained that the directive is non-negotiable.
It noted that compliance validation exercises will begin from October 20, ahead of the final migration deadline of October 31.
The apex bank stressed that the new rules are aimed at enhancing transaction integrity, curbing fraud, and ensuring uniform data quality across the country’s payments ecosystem.