The Central Bank of Nigeria (CBN) has mandated all Payment Service Providers to route transactions from Point of Sales (PoS) terminals, both physical and electronic, through a CBN-approved Payment Terminal Service Aggregator (PTSA).
The CBN issued a 30-day compliance deadline for providers to follow enhanced routing guidelines for PoS transactions. In a circular signed by Oladimeji Yisa Taiwo from the Payments System Management Department, the directive aims to bolster the monitoring of electronic transactions across Nigeria and decentralize PoS transaction routing, which previously faced concerns over centralization under one entity.
The circular also highlights that PTSAs are required to channel transactions to processors certified by relevant payment schemes, nominated by acquirers, and licensed by the CBN.
This directive follows the expiration of the September 5th deadline for PoS agents to register their businesses with the Corporate Affairs Commission (CAC). Despite legal challenges, the CAC has begun cracking down on unregistered PoS businesses, citing a need to curb fraud and prevent cryptocurrency trading through these platforms.
