The Association of Mobile Money & Bank Agents in Nigeria has cautioned against a rushed approach to the implementation of the geo-tagging of Point of Sales terminals in the country as mandated by the Central Bank of Nigeria.
The stance of the association was disclosed by the acting National President of AMMBAN, Dr. Obioha Oti, in a chat with The PUNCH over the weekend.
The CBN, in a circular dated August 25, 2025, which was signed by the Director of the Payments System Supervision Department, Rakiya Yusuf, mandated the geo-tagging of all existing PoS terminals within 60 days of the circular, while new terminals going forward must be geo-tagged before certification and activation.
Reacting to the directive, Oti said there was a need to avoid a rushed approach to avoid a situation similar to the naira redesign debacle that led to cash scarcity.
He said, “The 60-day ultimatum announced by the CBN is too short for a nationwide exercise of this magnitude. Nigeria has over 1.9 million active PoS terminals (NIBSS, 2024) spread across diverse terrains and connectivity levels. Rolling out geo-tagging in just two months will leave many agents, especially in rural areas, unable to comply. We strongly recommend a minimum of six months to one year to allow adequate sensitisation, infrastructure readiness, and device upgrades.
“Just like the cashless policy, we believe geotagging should be implemented in phases, beginning with urban centres where connectivity is strong and then expanding to semi-urban and rural areas. A phased approach will help regulators test the system, correct technical glitches, and gather lessons before scaling nationwide. This will prevent operational shocks for agents and customers.”
Maintaining that the PoS terminal had become the lifeline of Nigeria’s payment system, “Processing over 1.5 billion transactions worth N10.7tn in 2023 alone (NIBSS Instant Payment Data). Any rushed implementation without contingency planning could disrupt services and trigger nationwide discontent, similar to what happened during the naira redesign policy.
We recommend that the CBN introduce stop-gap measures, such as temporary exemptions or grace windows, so that services are not disrupted while compliance progresses.”
Oti also called on the CBN to strengthen its engagement with the association, saying the success of the geo-tagging directive hinges on a robust engagement with members of the association.
“For this directive to succeed, AMMBAN must be treated as a critical stakeholder in the planning, rollout, and monitoring phases. This will ensure field realities are taken into account and policies achieve intended outcomes,” he said.
On the financial inclusion front, Oti noted that “The purpose of geo-tagging should be to map and close access gaps, not to create new ones. If poorly implemented, rural agents who lack internet or funds to upgrade devices risk being pushed out of the system, worsening exclusion. We recommend that the CBN provide support mechanisms such as device financing schemes or network partnerships to ensure no agent, particularly in rural areas, is left behind.”
The acting president of AMMBAN also revealed that members of his association were already being sensitised to the directive, “We are making sure agents understand the compliance process and what it means for their operations. In addition, as part of our broader commitment to financial inclusion, we are holding our National Conference and 10th Anniversary in Gombe State later this year. This event will focus on strengthening agency banking in underserved regions, especially the North-East, where access gaps remain wide.”
Oti asserted that if well implemented, geo-mapping can be a game-changer: “It will provide accurate visibility into the distribution of agents, ensuring regulators and industry players know exactly where the gaps are. For example, Nigeria currently has over 1.9 million PoS terminals in circulation, but there are still thousands of communities without sufficient agent coverage. With geo-tagging, policies can be tailored to close these gaps, expand financial access, and improve trust in the system.”
Expressing the CBN mandate, the Head of Financial Institutions Rating, Agusto & Co, Ayokunle Olubunmi, said, “It will help to implement various initiatives of the CBN in terms of the maximum amount that you can withdraw via PoS, and it ensures that the agents comply because it will become easier to track their location and the transactions that are consummated.”
Olubunmi, who is a financial analyst, added, “It is better late than never. We must realise that this PoS thing was not started by the CBN; it was something that evolved, hence regulations would have to catch up so as to curb nefarious activities. For me, it is better late than never.”
A former Chief Economist at Zenith Bank, Marcel Okeke, also hailed the move, saying, “This will stop people who get PoS in one place and take it to another location for all kinds of fraud, and such will no longer be able to do that. This is a good one for our financial sector. It is a great step in terms of managing insecurity, kidnapping, and armed robbery. With this geo-tagging, every PoS is registered to operate somewhere, and every transaction on it will be registered somewhere, and the monetary authorities will see it and trace it to that location.”
The Chief Executive Officer of CFG Advisory, Tilewa Adebajo, described the move as a “step in the right direction to help with managing money supply and influence monetary policy direction.”
