This is a significant directive from the Central Bank of Nigeria (CBN) with far-reaching implications for the country’s payment ecosystem.

he Central Bank of Nigeria (CBN) has issued a mandatory directive to all Payment Terminal Service Providers (PTSPs), commonly known as PoS terminal providers, to integrate their systems directly with two major payment switches: NIBSS Plc and Unified Payments

• Companies that deploy and manage Point of Sale (PoS) terminals for merchants. They are responsible for the installation, maintenance, and technical support of the machines. Examples include Innovectives, Netsys, IT-Clear, etc.
• NIBSS (Nigeria Inter-Bank Settlement System): The backbone of the Nigerian payment industry. Owned by all licensed banks, it operates the central infrastructure that facilitates inter-bank transfers and payments, including the popular NIBSS Instant Payment (NIP) system.
• UPSL (Unified Payments Services Limited): A major payment processing company and another key switch in the Nigerian financial landscape. It operates the “Unified Payment” scheme and provides switching and processing services for banks and fintechs.

This is the primary reason. By forcing PTSPs to connect directly to NIBSS and UPSL, the CBN gains real-time, unfiltered visibility into all PoS transactions.

It helps monitor and prevent the use of PoS terminals for money laundering, fraud, terrorism financing, and other illegal cash-out schemes.

The CBN can track transaction volumes, values, and locations to ensure compliance with its policies on transaction limits and other regulations.

The CBN’s one-month ultimatum to PoS providers is a bold and decisive step towards tightening its grip on Nigeria’s rapidly evolving digital payment landscape. It marks a shift from indirect to direct supervision, prioritizing security, transparency, and data-driven oversight. While it presents immediate challenges for PTSPs, it is a foundational move aimed at building a more robust, stable, and trustworthy financial ecosystem for all Nigerians.