NEWS
CBN Cracks the Whip on PoS Operators, Issues One-Month Ultimatum for Dual Connectivity Integration to Safeguard Nigeria’s Digital Payments Ecosystem
In a decisive move aimed at strengthening the resilience, reliability, and security of Nigeria’s rapidly expanding digital payment infrastructure, the Central Bank of Nigeria (CBN) has issued a one-month ultimatum to all point-of-sale (PoS) terminal providers to integrate dual connectivity with the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL).
The directive, widely seen as a major regulatory intervention, is designed to insulate the nation’s cashless payment framework from service disruptions while ensuring redundancy across critical transaction channels. Failure to comply within the stipulated timeframe could see defaulting operators edged out of Nigeria’s highly competitive and lucrative PoS market, underscoring the apex bank’s uncompromising push for a seamless and dependable cashless economy.
Details of the mandate were contained in a circular dated December 11, 2025, and released to the public on Friday. The circular, signed by Rakiya Yusuf, Director of the CBN’s Payments System Supervision Department, places direct obligations on a wide range of industry players, including acquirers, processors, and payment terminal service providers (PTSPs). These stakeholders are required to configure their systems for simultaneous connectivity to both NIBSS and UPSL platforms on or before January 11, 2026.
“This is non-negotiable: Dual connectivity isn’t just a technical upgrade; it’s a firewall against single points of failure that have plagued our transactions in the past,” Yusuf emphasized in the circular, highlighting the regulator’s resolve to eliminate systemic weaknesses exposed by recurring network failures and rising cyber threats.
The policy directive builds on Nigeria’s sustained transition toward electronic payments, a shift that has accelerated in recent years as PoS terminals became indispensable to millions of Nigerians amid prolonged cash shortages, currency redesign challenges, and evolving consumer habits. For many households and small businesses, PoS operators have become the primary interface with the formal financial system.
Under the new regulatory framework, all PoS terminals deployed across the country must be capable of routing transactions through both settlement platforms, ensuring continuity of service if one network experiences technical difficulties or downtime.
NIBSS, widely regarded as the backbone of Nigeria’s interbank transfer architecture, and UPSL, a major force in domestic card processing and switching, are now positioned as complementary pillars of the payments ecosystem. By mandating dual connectivity, the CBN aims to drastically reduce transaction failures, minimize downtime, and enhance processing speed, developments expected to directly benefit street traders, retailers, financial agents, and merchants who collectively process billions of naira in transactions daily.
The directive has been met with cautious optimism across the fintech and payments industry. Some industry insiders have described the move as transformative, albeit demanding.
“It’s a smart hedge against black swan events, like the 2023 network outages that cost businesses millions,” said fintech analyst Tunde Afolabi, founder of PayStack Insights.
“Yet, for smaller PTSPs scraping by on thin margins, this could mean hefty compliance costs, upgrades, testing, and training that might force consolidations or exits.”
Despite such concerns, the CBN appears determined to balance enforcement with incentives. The regulator has provided a short implementation window to enable compliance while signaling that early adopters may benefit from enhanced security standing and regulatory goodwill.
However, the consequences of non-compliance are explicitly spelled out in the circular, ranging from financial penalties to license suspension or outright exclusion from the PoS ecosystem.
The latest directive is consistent with the CBN’s recent history of assertive regulatory action in the financial technology space. From the 2024 clampdown on crypto payment gateways to ongoing efforts to curb illicit foreign exchange trading, the apex bank has repeatedly demonstrated its readiness to recalibrate Nigeria’s financial architecture in the interest of stability and transparency.
With industry reports indicating that PoS-related fraud losses exceeded ₦50 billion last year, the compulsory dual-link integration represents a calculated effort to fortify system resilience and restore confidence. Analysts believe the move could further position Nigeria’s estimated $400 billion digital payments market as a safer and more attractive destination for both local and foreign investment.
As the January 11, 2026 deadline approaches, all eyes will be on PoS operators and payment service providers to see how swiftly and effectively they respond to what is shaping up to be one of the most consequential payment system reforms in recent years.