IMPLICATIONS OF CBN NEW POLICY ON GEO-FENCING ON POS OPERATORS
The Central Bank of Nigeria (CBN) has introduced a geofencing policy for Point of Sale (PoS) terminals to enhance oversight and curb fraud in the electronic payments system. The key elements of this initiative include: Geo-tagging Requirement: All PoS terminals must be geo-tagged, restricting their use to a 10-meter radius from the registered business or service location. This limits terminal mobility, ensuring transactions occur only at designated sites. Purpose : The policy aims to eliminate "cloned" or "ghost" terminals, reduce fraudulent activities (such as those linked to ransom payments), and enhance transaction integrity. It also supports Nigeria’s cashless policy and aligns the payment system with international standards. Technical Specifications : Terminals must run Android OS version 10 or higher and integrate the National Central Switch’s Software Development Kit (SDK) for geolocation monitoring. Geo-location data must be captured at the star...