Economy
CBN eyes safer digital transactions with new POS rules
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The Central Bank of Nigeria is clamping down on PoS fraud with geo-tagging and global payment standards, aiming to make every digital transaction traceable and trustworthy,
Digital payments are reshaping commerce across Nigeria, from Lagos, Onitsha, and Abuja’s busy streets to the country’s growing online marketplaces. Cash is slowly losing ground to electronic transactions, but problems like fraud, technical glitches, and uneven access continue to complicate the country’s embrace of a fully digital economy.
To address these issues, Governor Olayemi Cardoso is steering the Central Bank of Nigeria toward stricter oversight of point-of-sale terminals and other electronic payment systems. The new regulations aim to strengthen transaction monitoring, protect consumers, and extend financial services to millions who have long remained outside the formal banking system.”
The new circular, titled “Migration to ISO 20022 Standard for Payment Messaging and Mandatory Geo-Tagging of Payment Terminals”, was issued on August 25, 2025, and signed by the Director of the Payments System Supervision Department at the CBN, Dr Rakiya Yusuf.
One of the components of these reforms is that all PoS devices must now be geo-tagged with GPS and registered with a licensed payment aggregator. Terminals are allowed to operate only within 10 metres of their registered location.
“The move is a counter-terrorism initiative that targets fraudsters who have exploited PoS channels to defraud unsuspecting users. This regulation enhances traceability and accountability and is a step that deserves commendation,” the former Zenith Bank chief economist told The PUNCH.
Under the new rules, all PoS terminals must now be linked to one of two licensed aggregators, NIBSS or Unified Payment Services Limited. Merchant acquirers are required to route all transactions through these aggregators, while payment processors must integrate with both systems. The CBN has also set a 60-day compliance window for existing terminals, with a full migration deadline of October 31, 2025.
Geo-tagging is central to this oversight. Every PoS machine must capture and transmit its location at the start of a transaction, with activity outside the 10-metre radius automatically flagged. Terminals that are not geo-tagged will be barred from processing payments.
According to the circular, “Geo-location data must be captured at transaction initiation and included in the message payload as a mandatory reporting field. Terminals not directly routed to a PTSA are not permitted to transact.”
The reforms are designed to mitigate fraud, improve consumer protection, and reduce operational risks associated with reliance on a single aggregator. The Financial Institutions Training Centre’s Fraud and Forgeries Report has highlighted the urgency, showing a 31.12 percent increase in PoS-related fraud cases in the first quarter of 2024.
Analysts say that geo-tagging, combined with tighter routing requirements, will make fraudulent transactions easier to detect.
“Previously, PoS devices could be moved between locations, facilitating illicit activities, including ransom collections,” economist Okeke explained. “Now, with mandatory GPS tracking and aggregator routing, operators will be accountable, and enforcement becomes feasible.”
Since their introduction in 2013, PoS terminals have quietly reshaped everyday commerce in Nigeria. By March 2025, the country had 8.36 million registered PoS terminals, with 5.9 million actively in use, a 119 per cent increase from 2.69 million the previous year, according to the Nigeria Inter-Bank Settlement System
A total sum of N2.300 trillion, being the May 2026 Federation Account Revenue, has been shared between the federal government, states, and the local government councils.
In a statement on Wednesday by the spokesperson of the Office of the Accountant General of the Federation, Bawa Mokwa, the revenue was shared at the June 2026 Federation Account Allocation Committee FAAC meeting held in Abuja.
The N2.300 trillion total distributable revenue comprised distributable statutory revenue of N1.611 trillion and distributable Value Added Tax (VAT) revenue of N688.785 billion.
A communiqué issued by the Federation Account Allocation Committee (FAAC) indicated that the total gross revenue of N3.395 trillion was available in the month of May 2026. Total deduction for cost of collection was N123.546 billion, while total transfers and refunds were N971.610 billion.
According to the communiqué, gross statutory revenue of N2.651 trillion was received for the month of May 2026. This was higher than the sum of N2.378 trillion received in the preceding month by N273.623 billion.
Gross revenue of N743.668 billion was available from the Value Added Tax (VAT) in May 2026. This was lower than the N806.617 billion available in the month of April 2026 by N62.949 billion.
The communiqué stated that from the N2.300 trillion total distributable revenue, the federal government received a total sum of N818.680 billion, and the state governments received a total sum of N759.141 billion.
The local government council received N534.277 billion, while the sum of N188.132 billion (13% of mineral revenue) was shared with the benefiting state as derivation revenue.
On the N1.611 trillion distributable statutory revenue, the communiqué stated that the federal government received N749.801 billion and the state governments received N380.309 billion.
The local government councils received N293.202 billion, and the sum of N188.132 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.
From the N688.785 billion distributable Value Added Tax (VAT) revenue, the federal government received N68.879 billion, the state governments received N378.832 billion, and the local government councils received N241.075 billion.
In May 2026, Companies Income Tax (CIT), CGT, SDT, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and Oil and Gas Royalty increased significantly, while Import Duty, Value Added Tax (VAT), Excise Duty, and CET Levies decreased considerably.
The Federal Government, states and local government councils shared a total sum of N2.257 trillion from the Federation Account in April.
Director, Press and Public Relations, Office of the Accountant General of the Federation, Bawa Mokwa, disclosed this in a statement on Monday.
The revenue was shared at the May 2026 Federation Account Allocation Committee, FAAC, meeting held in Abuja.
The N2.257 trillion total distributable revenue comprised distributable statutory revenue of N1.260 trillion , distributable Value Added Tax, VAT, revenue of N747.088 billion, and augmentation of N250.000 billion.
This indicated that total gross revenue of N3.184 trillion was available in the month of April 2026. The total deduction for cost of collection was N113.756 billion, while total transfers, refunds, and savings were N813.839 billion.
According to the statement, gross statutory revenue of N2.378 trillion was received for the month of April 2026. This was higher than the sum of N1.699 trillion received in the preceding month by N678.224 billion.
Gross revenue of N806.617 billion was available from VAT in April 2026. This was higher than the N664.425 billion available in the month of March 2026 by N142.192 billion.
The communiqué stated that from the N2.257 trillion total distributable revenue, the Federal Government received a total sum of N787.351 billion, and the state governments received a total sum of N772.360 billion.
The local government councils received N540.152 billion, while the sum of N157.254 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.
On the N1.260 trillion distributable statutory revenue, the statement stated that the Federal Government received N580.942 billion and the state governments received N294.661 billion.
The local government councils received N227.172 billion, and the sum of N157.254 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.
From the N747.088 billion distributable VAT revenue, the Federal Government received N74.709 billion, the state governments received N410.898 billion, and the local government councils received N261.481 billion.
The Federal Government received N131.700 billion of the N250.000 billion, the state governments received N66.800 billion, and the local governments received N51.500 billion.
In April 2026, Companies Income Tax, CIT, CGT, SDT, import duty, oil and gas royalty, and VAT increased significantly, while Petroleum Profit Tax, PPT, and hydrocarbon tax, HT, decreased considerably.
Excise duty and CET levies decreased marginally.
Nigeria’s company income tax, CIT, decreased in the first quarter of 2026 to N1.37 trillion.
The National Bureau of Statistics, NBS, disclosed this in its CIT report released on Monday.
The report showed that the country’s CIT dropped by 8.98 percent when compared to N1.449 trillion collected in Q4 2025.
Further breakdown showed that domestic CIT stood at N538.91 billion, while foreign payments accounted for N828.82 billion in the period under review.
“Company Income Tax (CIT) in Q1 2026 stood at N1.37 trillion, indicating a decrease of 8.08 percent on a quarter-on-quarter basis from N1.49 trillion in Q4 2025.
“Of the total CIT collected, domestic CIT contributed N538.91 billion, while foreign CIT payment accounted for N828.82 billion during the quarter,” the NBS stated.
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