POS
By Olamilekan Abayomi
The Central Bank of Nigeria (CBN) has issued a directive requiring all point‑of‑sale (PoS) terminal providers to link their systems to both the Nigeria Inter‑Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL) within one month. The order, dated early December, gives providers until mid‑January 2026 to complete the integration and demonstrate compliance to the regulator.
The move is aimed at addressing the frequent downtime that has plagued PoS transactions across the country. By mandating dual connectivity, the CBN hopes to create a more resilient payment ecosystem in which a failure in one network does not disrupt the entire transaction flow, thereby improving service availability for merchants and consumers alike.
Under the new requirement, each PoS terminal must maintain active connections to both NIBSS and UPSL and be capable of automatically switching to the alternate aggregator should one channel experience an outage. This fail‑over mechanism is expected to reduce transaction delays and minimise the loss of revenue for businesses that rely heavily on electronic payments.
Providers are required to conduct rigorous testing of the dual‑link setup, submit certification reports to the CBN, and notify the regulator of any system disruptions within 24 hours. The regulator will also carry out periodic audits to verify that the fail‑over functionality works as intended and that reporting procedures are being followed.
Industry players have responded with a mix of cautious optimism and concern. While many acknowledge that the redundancy will benefit end‑users, some smaller terminal operators have warned that the integration process could be technically challenging and costly, potentially leading to short‑term disruptions as upgrades are rolled out.
If the deadline is met, the CBN expects a noticeable improvement in PoS reliability, greater confidence in digital payments, and a reduction in the regulatory penalties that could be imposed on non‑compliant providers. The regulator has signalled that failure to adhere to the new standards will attract sanctions, underscoring the seriousness of the initiative.
