By NIyi Jacobs
The Central Bank of Nigeria (CBN) has issued a directive to Payment Service Providers (PSPs) to comply with enhanced routing guidelines for Point of Sale (PoS) transactions within 30 days. This move aims to strengthen the monitoring of electronic transactions across Nigeria.
In a circular, the CBN mandates that all PoS transactions from merchant and agent locations—whether physical or electronic—must now be routed through any CBN-licensed Payment Terminal Service Aggregator (PTSA). This directive is part of efforts to decentralize PoS transaction routing and address concerns over the centralization of such transactions under a single entity.
The CBN has outlined several steps PSPs must adhere to under the new directive. Acquirers are now required to route all transactions from PoS terminals through any of the CBN-licensed PTSAs. PTSAs must only send PoS transactions to processors certified by relevant payment schemes, which must also be nominated by the acquirer and licensed by the CBN.
Acquirers are given the flexibility to choose which processors and PTSA they want to work with, providing greater autonomy in transaction processing and management. All Payment Terminal Service Providers (PTSPs) are instructed to ensure that their PoS devices and applications are correctly configured to comply with the new directive.
Both PTSPs and PTSAs are required to submit detailed monthly reports to the CBN. The CBN has given PSPs a 30-day window to regularize their operations in line with the new requirements. Both PTSPs and PTSAs must notify the CBN in writing of their compliance within this period.
