Addressing the ecosystem risks in Nigeria’s POS Geo-Tagging Drive

Written by: Emmanuel Okoegwale, MobileMoneyAfrica

The Central Bank of Nigeria’s new directive to geo-tag and geo-fence POS agents within a 10-metre radius (effective October 31, 2025) is designed to curb fraud and illegal activities. While the objective is laudable, the directive raises key market concerns that all stakeholders must proactively address.

For Agents: Mobility is reduced which may increase churn, failed or declined transactions outside the approved radius and they may even attempt to circumvent the rule by using GPS spoofing or by acquiring multiple POS devices. Notably, many agents also accept bank transfers, so POS only controls may have limited effect.

For Providers (Fintechs, Banks, PTSPs, PTSAs): Upfront investments required to upgrade devices to ISO 20022 standards, integrate fraud-resistant onboarding and manage potential operational strain from increased declined / failed transactions outside the radius. Risks include agent churn, reduced volumes in mobile-driven markets and agent can demand for multiple POS devices to create a 'single agent, multiple location' circumvention.

Providers will need stronger fraud controls, customer education and compliance incentives to maintain balance.

For Regulators (CBN, NDIC, NCC): Enforcement at scale will be challenging. Arbitrage risks remain if agents exploit loopholes while over-regulation could stifle legitimate mobility models, especially in rural/market settings.

Pushback from communities or industry bodies could also slow implementation. A phased rollout, pilot roaming models and tiered urban-rural frameworks will help reduce shocks while ensuring fraud is curtailed.

With robust collaboration, phased implementation and adaptive oversight, the policy can minimize fraud, enhance consumer trust, and strengthen Nigeria’s payment ecosystem without stifling innovation and agent livelihoods.

Question for the ecosystem:

How can providers and regulators strike the right balance between compliance and flexibility to ensure the geo-tagging drive delivers its intended impact?

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