The Central Bank of Nigeria (CBN) has mandated that all Point of Sale (PoS) operators route their transactions through licensed payment terminal service aggregators (PTSAs). This directive aims to improve the tracking and management of electronic transactions in the country.

According to a circular posted on the CBN’s website on Thursday, this new regulation is part of ongoing efforts to enhance transaction oversight. The CBN emphasized that:

1. Acquirers must route all transactions from PoS terminals—whether physical or electronic—through any CBN-licensed PTSA.
2. PTSAs must use only processors certified by relevant Payment Schemes and licensed by the CBN.

The Nigeria Interbank Settlement System Plc was initially granted a PTSA licence in 2011 to manage PoS transaction aggregation. To address concerns about relying on a single aggregator, the CBN issued a second PTSA licence to Unified Payment Services Limited on April 19, 2024.

To ensure effective tracking of electronic transactions, the CBN has directed that all acquirers process payments through either of the two licensed aggregators. Additionally, licensed processors must integrate with both PTSAs, providing acquirers with flexibility in selecting service providers.

Payment terminal service providers (PTSPs) must configure their devices and applications to be compatible with any PTSA chosen by acquirers. PTSPs are also required to submit monthly reports to the CBN detailing the number of merchants and agents they manage and the PTSA services utilized.

Each PTSA must also submit monthly transaction reports to the CBN’s Payments System Management Department within seven days after the end of each month. The CBN has given PSPs 30 days to align their operations with the new requirements, warning that non-compliance will result in appropriate sanctions.