Author
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TMT & Competition Team
In August 2025, the Central Bank of Nigeria (CBN) issued a landmark Circular mandating migration to the ISO 20022 payment messaging standard and the geo-tagging of all payment terminals.
This directive goes beyond earlier readiness guidance by setting binding obligations for all Payment Providers—including banks, PSSPs, PTSPs, MMOs, super agents, and aggregators—and introduces strict compliance timelines.
Key highlights include:
- Mandatory adoption of ISO 20022 messaging for all domestic and cross-border transactions.
- Deployment of native geolocation services on POS and payment terminals, with geo-data embedded in each transaction payload.
- Certification of all terminals by the National Central Switch (NCS), with integration of the geolocation SDK and geofencing within a 10-meter radius of the registered business location.
- Strict deadlines requiring all existing terminals to be geo-tagged by 24 October 2025, with full ISO 20022 compliance by 31 October 2025.
The Circular reflects CBN’s drive to enhance transparency, security, and operational oversight in Nigeria’s payments ecosystem while aligning with global SWIFT standards.
For Payment Providers, this means significant system upgrades and compliance investments—but also an opportunity to strengthen fraud prevention, transaction traceability, and customer trust.
