CBN Issues New Directive Mandating PoS Transactions to be Routed Through Certified Aggregators
The Central Bank of Nigeria (CBN) has issued a new directive requiring all Payment Service Providers (PSPs) to route Point of Sale (PoS) transactions through certified Payment Terminal Service Aggregators (PTSAs) within 30 days.
Announced on September 11, 2024, through a circular signed by Oladimeji Yisa Taiwo from the CBN’s payments system management department, the regulation aims to improve the security and oversight of electronic payments in the country.
According to the circular, the move is part of the CBN’s strategy to track and monitor electronic transactions effectively. The bank granted a PTSA license to the Nigeria Interbank Settlement System Plc (NIBSS) in 2011, and this new directive reinforces the requirement for all PoS transactions—both physical and electronic—to be routed through any CBN-licensed PTSA.
The circular highlights the CBN’s intent to decentralize PoS transaction routing, enhance transparency, and reduce the system’s reliance on a single aggregator. This follows the CBN’s diversification of the PTSA structure, previously managed by a single aggregator, and mandates that certified PTSAs route transactions only to processors licensed by the CBN and certified by the relevant Payment Scheme.
This directive comes on the heels of the CBN’s recent requirement for PoS operators to register with the Corporate Affairs Commission (CAC), marking another step in the regulator’s efforts to strengthen the payment infrastructure in Nigeria.
