By 
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) within one month. This directive aims to enhance the monitoring and management of electronic transactions across the country.
In a circular posted on the CBN’s website on Thursday, the bank stated that the decision to require PoS transactions to pass through PTSAs is part of its broader strategy to improve transparency in the payment system.
“As part of efforts to address concerns regarding routing all PoS transactions through a single aggregator, the CBN on April 19, 2024, granted a second PTSA licence to Unified Payment Services Limited,” the circular noted.
The directive stipulates that all acquirers—financial institutions responsible for processing payments from PoS terminals—must ensure that transactions, whether from physical or electronic PoS terminals, are processed through a CBN-licensed PTSA. PTSAs, in turn, are required to forward transactions only to processors certified by the relevant Payment Scheme, nominated by the acquirers, and licensed by the CBN.
To prevent over-reliance on a single aggregator, the CBN had previously granted a PTSA licence to the Nigeria Interbank Settlement System (NIBSS) in 2011. However, to address market concerns, the bank issued a second licence to Unified Payment Services Limited in April 2024, allowing more flexibility for acquirers to choose between the two aggregators.
The CBN emphasized that licensed processors must integrate with both PTSAs, enabling acquirers to select their preferred service providers. Payment Terminal Service Providers (PTSPs), who deploy and manage PoS terminals, are also required to ensure their devices and applications are compatible with any PTSA chosen by the acquirers.
Additionally, PTSPs are mandated to submit monthly reports to the CBN, detailing the number of merchants and agents they manage, as well as the services provided by the aggregators. Similarly, PTSAs must provide the CBN with a report of all transactions processed through their platforms. These reports must be submitted to the Director of the Payments System Management Department within seven days following the end of each month.
The CBN has given all Payment Service Providers (PSPs) a 30-day window to regularize their operations with the licensed PTSAs, warning that failure to comply with this directive will result in sanctions.
This move comes on the heels of a recent announcement by the Corporate Affairs Commission (CAC), which requires all PoS operators in Nigeria to register with the CAC by September 5, 2024. The combined efforts by the CBN and CAC are seen as part of a broader initiative to formalize and regulate the rapidly growing PoS sector in Nigeria, ensuring better oversight and customer protection.
Comments