This call was made at the Mandatory Compliance and Anti-Money Laundering (AML) Training Workshop held in Lagos on 28 February 2025. Organised in collaboration with Citi, the event gathered compliance officers, trade operations specialists, and correspondent banking teams to discuss emerging financial risks and regulatory expectations.

Shola Phillips, special adviser to the CBN Governor on Compliance, stressed that Nigerian banks must adhere to evolving international compliance standards to maintain credibility and sustain correspondent banking relationships. 

“Regulators expect financial institutions to maintain dynamic, risk-based AML/CFT programmes that are responsive to the evolving financial environment. Proactive engagement with regulatory developments and the integration of innovative compliance solutions is essential for institutions to meet these expectations effectively,” she stated.

Phillips warned that failure to strengthen compliance frameworks could lead to repercussions from international financial institutions, limiting Nigerian banks’ access to global banking networks.

At the workshop, global financial experts noted the importance of rigorous compliance measures in mitigating financial risks.

Siobhan Ni Ealaithe, managing director of Citi’s Correspondent Banking Group, spoke on the role of governance structures in preventing illicit financial activities. She noted that compliance protocols such as Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) were critical in enhancing financial transparency.

Stephanie Bailey, head of EMEA AML Risk Management for Foreign Correspondent Banking, revealed that an estimated $3 trillion in illicit funds flow through the global financial system annually. 

She urged Nigerian banks to adopt advanced due diligence processes and technology-driven risk assessments to stay ahead of financial crime threats.

The Central Bank of Nigeria reaffirmed its determination to uphold strict regulatory standards to protect Nigeria’s financial ecosystem. Governor Olayemi Cardoso, in a statement, stressed that regulatory compliance is fundamental to maintaining trust and stability in the financial sector. 

“A strong financial system is built on trust, and trust is earned through integrity and compliance. The CBN will continue to set high regulatory standards to protect Nigeria’s financial ecosystem and ensure its alignment with global best practices,” he said.

As part of its work to strengthen oversight, the apex bank is intensifying supervision, deploying digital monitoring tools, and ensuring that Nigerian banks adopt proactive compliance strategies.

During a visit to an ATM stand in Lagos, we spoke with a customer who shared that eight out of ten ATMs are either out of service or have no cash. “This Bank never has money in their ATM,” she said.

“Even when they do, it’s usually only until noon, and then they stop working. The only option is to go into the bank and make transfers yourself.”

Techeconomy engaged with an insider at one of Nigeria’s top-tier banks to understand why this problem seems unending. We wanted to know: Why aren’t banks keeping their ATMs filled? Do they deserve the sanctions imposed by CBN?

In response, the insider said, “That’s a broad conclusion for a bank that has over 800 branches. I’m not sure how many branches the customer has visited before arriving at that. However, I can tell you several challenges faced by banks in Nigeria and not just ours, but it is heavier on us because of our high number of branches.”

He continued, “Yes, there is a CBN sanction on banks when your ATMs are not dispensing. The regulatory body expects the bank to load their machines when there is an obvious epidemic in the sector called “POS.”

The PoS Epidemic: A Growing Concern

The PoS (Point of Sale) phenomenon has become a big issue in the Nigerian banking sector, contributing heavily to cash shortages in ATMs. 

With the high reliance on PoS agents across the country, many Nigerians are using them as alternatives to traditional banking transactions. However, PoS agents, who often carry large sums of cash for transactions, are now becoming primary players in the liquidity problems facing banks.

“PoS agents are constantly on standby at ATMs and business locations, to collect and buy cash from customers or businesses,” the insider explained. 

“While these agents may seem to help by making things easier and providing access to cash withdrawal or deposit, in the larger scheme, they’re creating problems. The fact is, businesses are becoming more reliant on PoS agents rather than making traditional cash deposits in banks.

“They are making things difficult for both the masses and the Banks.”

This has caused a drastic reduction in the amount of cash flowing into the banking system, leading to shortages at ATMs. It’s reported that in some urban areas, PoS agents have begun hoarding cash to capitalize on the high demand, further straining ATM services.

While the CBN sanctions are meant to encourage better service across ATMs, it’s still not clear how effective they have been. The insider acknowledged the CBN’s role in attempting to regulate ATM cash availability but also noted the complications faced by banks in meeting these demands, especially when dealing with the PoS issue.

“Yes, the CBN expects us to have cash readily available at ATMs, but what is the bank to do when there is a continuous shortage of cash in circulation? How many companies are still making cash deposits? Most businesses rely on PoS agents now,” the insider said.

According to the Nigeria Inter-Bank Settlement System (NIBSS), the number of PoS terminals in Nigeria surged by 129% over the past three years, with an increasing percentage of Nigerians using PoS services daily. This growth in PoS usage has greatly impacted the ability of banks to maintain sufficient cash flow in their ATMs.

This ATM cash shortage crisis is not an isolated banking issue; it is intertwined with Nigeria’s economic challenges. The scarcity of cash is just one symptom of larger financial challenges the country is facing, including inflation and the ongoing transition to a cashless economy.

The government’s vision of digital financial inclusion, paired with inflation and currency devaluation, has placed high pressure on the banking system. As cashless transactions become more prevalent, many Nigerians are still challenged with access to physical currency for daily needs. These economic factors have compounded the challenges banks face in providing adequate ATM services.

Addressing the Root Cause: PoS Regulation

The key to solving the ATM cash issue lies in addressing the root cause—the unchecked proliferation of PoS agents. While PoS services are undoubtedly improving access to cash for many Nigerians, the increasing demand and the role PoS agents play in withdrawing cash from the banking system are draining the liquidity needed to sustain ATM networks.

The insider stressed, “Before banks can begin to solve the ATM shortage, there needs to be a conversation around regulating the PoS sector. We need to ensure that businesses are encouraged to deposit cash back into the system, rather than hoarding it.”

“The menace of POS first needs to be tackled.”

Meanwhile, the apex bank had recently stated that “Ensuring seamless cash flow is paramount to maintaining public trust and economic stability. The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.”

The statement further read, “The CBN’s investigations and monitoring will continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators. The Central Bank is working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 million.

“The new policy on cash-based transactions (withdrawals) in banks, aims at reducing (NOT ELIMINATING) the amount of physical cash (coins and notes) circulating in the economy, and encouraging more electronic-based transactions (payments for goods, services, transfers, etc.)”

The soon-to-be-launched card aims to bring better access to essential services, such as financial inclusion, government interventions, and job applications, providing Nigerians with a simplified, reliable identification system.

One advantage of the new ID card is its potential to drive financial inclusion. With over 100 million Nigerians currently excluded from the formal banking system, the new card will bring a good portion of the population into the fold. 

It will serve as a gateway for Nigerians to open bank accounts, access credit facilities, and request either debit or credit cards, with the added benefit of building a verifiable credit score. This development will make it easier for citizens to secure loans from both government and private financial institutions.

This innovation is backed by a partnership between NIMC and the Nigerian Consumer Credit Corporation (CREDICORP), which will work together to establish reliable credit scores for all Nigerians who have registered their National Identification Number (NIN). 

The integration of credit scores with the NIN will simplify access to loans and other financial services, greatly easing financial transactions for many Nigerians.

Again, the new National ID card will be a mandatory requirement for applying for jobs in both government and private sectors. This step aims to ensure that employers can confidently verify the identity of job applicants, giving them a clear and accurate view of an individual’s background. 

With the NIN card serving as an official identification, this process will help eliminate fraud and ensure greater transparency in hiring practices.

The ID card will also simplify a range of administrative functions. It will be accepted as a valid form of identification for essential services, such as voter registration and passport applications.

The simplicity of presenting a single card for these services will save time and reduce bureaucracy, ensuring that Nigerians can access services without unnecessary delays.

Added to these, the NIN card will help in the distribution of government interventions, helping to ensure that only eligible citizens receive social benefits. 

As part of the government’s vision to reduce corruption and improve transparency, the card will provide a secure means for accessing various government services across multiple Ministries, Departments, and Agencies (MDAs).

Developed in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS), the National ID card will also be compatible with Nigeria’s digital currency, the eNaira. 

This will allow cardholders to make digital transactions securely, further integrating the ID card into the nation’s growing financial ecosystem.

Dr. Peter Iwegbu, head of Card Management Services at NIMC, confirmed that the distribution of the new cards will begin shortly, with plans in place for decentralised access through banks nationwide. 

Nigerians will be able to request and collect their cards at local bank branches, and the NIMC will ensure that the pricing remains consistent across institutions.

This initiative is expected to increase transparency, reduce fraud, and promote financial inclusion.

Aiming to tackle inflation and stabilise the economy, the decision, announced by Governor Yemi Cardoso at the conclusion of the year’s final Monetary Policy Committee (MPC) meeting in Abuja, is a 25-basis-point increase from the previous 27.25%.  

This adjustment, the sixth such hike in 2024, comes as inflationary pressures keep increasing with Nigeria’s headline inflation climbing to 33.88% in October, as reported by the National Bureau of Statistics (NBS). 

The increase is a 1.18% month-on-month rise and a year-on-year surge of 6.55% compared to October 2023. Factors such as higher food prices and transportation costs have been key contributors to this inflationary trend.  

The MPC also maintained other parameters: the Cash Reserve Ratio (CRR) was held at 50% for Deposit Money Banks and 16% for Merchant Banks, while the Liquidity Ratio (LR) remained at 30%. The Asymmetric Corridor was retained at +500/-100 basis points around the Monetary Policy Rate (MPR).  

Explaining the decision, Cardoso noted that the committee unanimously agreed on the rate hike to address the “renewed inflationary pressures” observed in October. He noted that the measures were necessary to mitigate price instability and preserve economic stability.  

Economists have spoken about the potential impact of consecutive rate hikes on economic growth and loan repayment rates.

While the tighter monetary policy may help contain inflation, analysts argue that without complementary fiscal policies to address structural weaknesses—such as low productivity and inadequate diversification—the inflationary pressures may persist.  

Recent economic indicators further stress the challenges facing policymakers. Nigeria’s Gross Domestic Product (GDP) grew by 3.46% in the third quarter of 2024, driven primarily by the services sector. However, rising costs, a volatile naira, and declining oil production have exacerbated economic vulnerabilities.  

Analysts like Prof. Joseph Nnanna, Chief Economist at the Development Bank of Nigeria, has called for a change in focus from crude oil dependency to leveraging other untapped sectors to enhance productivity. 

Similarly, financial experts caution that the higher CBN interest rate could impact borrowers, leading to an uptick in loan defaults and non-performing loans for banks.  

Cardoso further noted the CBN’s focus on monitoring economic developments and implementing policies to achieve price stability.

The next MPC meeting is scheduled for January 2025, where further adjustments may be considered based on evolving economic conditions.  

The South African pay-TV operator disclosed this loss in its financial results for the six months ending September 30, 2024.

The initial deposit, which stood at N33.7 billion as of March 31, 2024, had already been reduced to N31.6 billion prior to the bank’s closure, due to cash remittances. 

Heritage Bank’s banking licence was revoked by the Central Bank of Nigeria (CBN) on June 3, 2024, and the Nigeria Deposit Insurance Corporation (NDIC) was appointed as the liquidator.

In its statement, MultiChoice explained that the deposit was written off as part of its operating expenses for the period under review. “Following the revocation of Heritage Bank’s banking licence and its subsequent liquidation, the group has written off its receivable relating to the cash held with the bank,” the company noted.

The financial setback is compounded by the continuing depreciation of the naira, which has led to additional foreign exchange losses for the company. 

MultiChoice also reported a reduction in funds repatriated from Nigeria, with $65 million extracted in the first half of FY24, down from $91 million in the previous year.

At the end of September 2024, MultiChoice held $11 million in cash in Nigeria, a significant drop from the $39 million reported at the close of FY24. 

Not giving in to these challenges, the company has focused on remitting cash from Nigeria, although the process has been hindered by the weaker naira and the substantial write-off related to Heritage Bank.

Although the amount MultiChoice is seeking to recover exceeds the maximum insured deposit of N5 million per depositor, the NDIC has stated it is working to ensure that all depositors, including those with balances above the insured limit, are reimbursed through dividends from the liquidation of the bank’s assets.

These financial challenges have added to MultiChoice’s issues in Nigeria, where it has faced an 18% drop in active DStv subscribers and a decrease in overall revenue. 

High-cost borrowing often forces people to take new loans to pay off existing debts, creating a vicious debt cycle, particularly affecting lower-income Nigerians.

The number of approved digital lenders in Nigeria has increased by 79.77% since April 2023, reaching 311 registered lenders by September 2024. 

This growth aligns with a 329.28% year-on-year rise in personal loans, which totalled ₦7.52 trillion in March 2024, according to the Central Bank of Nigeria (CBN). 

The Federal Competition and Consumer Protection Commission (FCCPC) registers digital lenders under the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022, requiring registration and approval. 

Fully approved lenders grew from 119 to 269, while conditional approvals fell from 54 to 42. The rise in consumer credit is linked to inflation, which reached 32.15% in August 2024, and the increasing demand for accessible loans through fintech.

Growing Consumer Credit and Inflation

The CBN attributes the surge in consumer credit to inflation and the popularity of loan apps. A 2023 report from Piggyvest showed that four in ten Nigerians are in debt, with 26% owing loan apps. Another study from SBM Intelligence found 27% of Nigerians, across income categories, turning to loan apps to cope with living expenses amidst record inflation. 

Trade Lenda’s CEO Adeshina Adewumi noted that “rising cost directly impacts the need to access more funds.” Similarly, Money Lenders Association President Gbemi Adelekan confirmed that “demand for loans has increased double-fold due to hardship,” with loan demand growing at 5% monthly, according to Babatunde Akin-Moses of Sycamore.

The Impact on Borrowers and Economic Distress

Loan apps are popular for their accessibility and speed. Apps like FairMoney, Carbon, and Palmcredit have made it possible for people to get quick, unsecured loans. 

According to recent reports, these platforms have collectively issued billions of naira in loans. The apps appeal because they require no collateral, have quick processing times, and are available to people without access to traditional banking. 

CBN governor Olayemi Cardoso predicted that mobile money and digital lending would drive service sector growth, with more people borrowing. 

However, Prof. Bongo Adi from Lagos Business School noted that most loans are for consumption, pushing borrowers into deeper debt. His research shows that borrowers spend their loaned funds quickly, then struggle to repay, driving them further into financial instability.

Loan Sharks and the Debt Trap

Loan apps often charge high interest rates, sometimes reaching 90%, mimicking traditional loan sharks. Borrowers face challenges with high repayment demands, hidden fees, and aggressive recovery methods, such as harassment and public shaming. What initially seems like a short-term solution can quickly spiral, leading to a debt trap that is difficult to escape.

On average, digital loan apps charge monthly interest rates of 15-30%, with annual rates surpassing 200% in some cases.

These add to financial distress and mental health issues, with anxiety and depression on the rise among borrowers. 

Poverty and Debt’s Impact

Approximately 70% of Nigerians live on less than ₦1,500 per day. High-interest loan repayments take away household incomes, forcing families to sacrifice essentials and perpetuating the poverty cycle. 

This financial limitation affects the current generation and also risks intergenerational poverty, impacting children’s future education and growth opportunities.

Regulatory Challenges and the Need for Reform

While the FCCPC introduced a regulatory framework in 2022, enforcement remains challenging due to the volume of loan apps and the complexity of monitoring their practices. 

Former FCCPC CEO Babatunde Irukera has highlighted the issue of multiple loans from various apps leading to unmanageable debt. A centralized credit information system will improve accountability by offering lenders insights into borrower histories, promoting better lending methods. 

However, gaps in consumer protection remain, pointing to the need for stronger regulations, including possible interest rate caps, transparency requirements, and limitations on debt collection methods.

Proposed Solutions: Alternatives and Financial Literacy

Expanding financial literacy programs could empower Nigerians to make better borrowing decisions. Community-based lending models, like cooperatives and savings groups, could provide low-interest options. 

Collaboration between NGOs, financial institutions, and the government could help provide affordable loans and support financial education. With these measures, Nigeria can address the risks associated with digital loan apps while providing safe financial alternatives for those in need.

Strengthen Regulatory Frameworks

• Enforce Existing Regulations: The Federal Competition and Consumer Protection Commission (FCCPC) and the Central Bank of Nigeria (CBN) should enforce existing regulations more strictly to ensure compliance by digital lenders.
• Update Guidelines: Regularly update the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending to address emerging issues and close loopholes.

Increase Financial Literacy

• Educational Programs: Implement nationwide financial literacy programs to educate consumers about responsible borrowing, the risks of high-interest loans, and how to read loan terms and conditions.
• Workshops and Seminars: Conduct workshops and seminars in communities to raise awareness about the dangers of falling into debt traps and how to avoid them.

Promote Alternative Financial Services

• Microfinance Institutions: Encourage the use of microfinance institutions that offer lower interest rates and more flexible repayment terms.
• Community Savings Groups: Support the establishment of community savings groups where members can pool resources and access funds without resorting to high-interest loans.

Enhance Consumer Protection

• Transparent Loan Terms: Ensure that loan apps provide clear and transparent information about interest rates, fees, and repayment terms.
• Complaint Mechanisms: Establish strong complaint mechanisms for borrowers to report issues with loan apps and seek redress

Encourage Responsible Lending Practices

• Interest Rate Caps: Implement interest rate caps to prevent loan apps from charging exorbitant rates.
• Ethical Standards: Promote better lending processes among digital lenders, including fair treatment of borrowers and avoidance of harassment and blackmail.

Support for Borrowers in Debt

• Debt Relief Programs: Develop debt relief programs to help borrowers manage and reduce their debt burden.
• Counselling Services: Provide access to financial counselling services to help borrowers develop repayment plans and manage their finances effectively.

This partnership is intended to support key sectors, including agriculture, infrastructure, housing, energy, and small and medium-sized enterprises (SMEs), addressing the demand for funding that is both accessible and viable for businesses operating in naira.

Through this collaboration, IFC will be able to mitigate currency risks while scaling up investments in Nigeria’s economy by targeting essential areas that drive growth and employment. 

The organisation has set a goal to inject over $1 billion in financing over the coming years, focusing on sectors that particularly benefit from local currency availability.

Governor Yemi Cardoso of the CBN noted that the agreement shows progress in Nigeria’s approach to enabling economic growth. 

He emphasised that the partnership between IFC and CBN will provide sustainable long-term financing solutions to private businesses at rates that support their expansion, bringing conventional intervention programmes to a more structured economic diversification model.

IFC’s Managing Director, Makhtar Diop, also commented on the initiative, pointing to the importance of providing affordable financing options in naira to meet the rising need for diversified funding solutions. He noted that this collaboration would spur lending activities within Nigeria, furthering job creation and economic stability.

The IFC currently maintains an investment portfolio in Nigeria, valued at approximately $2.13 billion, making it one of the largest portfolios in Africa. Local currency financing has become a priority for the organisation, with a vision to continue exploring innovative financial tools to expand its support across emerging markets.

As part of its global mission, the IFC mobilising private capital to create sustainable economic opportunities. The institution’s recent commitment of $56 billion to private companies in fiscal year 2024 is a drive to address development challenges in various countries through market-driven solutions and strategic partnerships.

The Monetary Policy Rate (MPR) was increased by 50 basis points, moving it from 26.75% to 27.25%. This decision was made following the Monetary Policy Committee’s (MPC) latest meeting in Abuja, chaired by CBN Governor Olayemi Cardoso.

As part of a goal to tighten monetary policy, the CBN also increased the Cash Reserve Ratio (CRR) for commercial banks, pushing it up by 500 basis points to 50%. 

Merchant banks were similarly affected, though with a smaller adjustment, seeing their CRR rise by 200 basis points to 16%. The liquidity ratio, however, remains unchanged at 30%, while the asymmetric corridor around the MPR was held at +500/-100 basis points.

Governor Cardoso emphasised that these were necessary to maintain pressure on inflation, which remains a huge issue for Nigeria’s economy. Despite some indications of moderating inflation, the MPC opted for further tightening to prevent a resurgence of price instability.

The consistent rise in interest rates, now in its fifth consecutive hike within the year is an issue for Nigerians. The CBN’s approach has been met with both support and caution, as stakeholders continue to assess the long-term impact of sustained high interest rates on economic growth and investment.

In his statement, CBN Governor justified the multiple interest rate hikes, stating that without these measures, inflationary pressures would have worsened, further straining the economy. 

He noted the importance of keeping inflation in check, noting that no economic model could successfully alleviate poverty in an environment where inflation remains unchecked.

The CBN’s newly revealed Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025 outline plans to integrate eNaira into government payment systems.

This initiative will enable Ministries, Departments, and Agencies (MDAs) to process payments to vendors and beneficiaries directly from their eNaira wallets.

The CBN’s strategy includes the forthcoming release of eNaira version 2.0, which is expected to enhance the currency’s functionality.

Key improvements will feature collaboration with federal and state governments and the introduction of offline capabilities and programmable money. These upgrades aim to solidify the eNaira’s role in both digital and traditional financial sectors.

Despite these advancements, the eNaira’s adoption has been low. As of March 2024, it constitutes just 0.36% of the total currency in circulation, showing limited uptake despite the CBN’s efforts to promote its use.

The CBN has previously waived transaction fees for eNaira transactions and established a minimum capital requirement for service providers to stimulate adoption. However, the International Monetary Fund (IMF) has critiqued the slow growth in eNaira wallet downloads, revealing the struggle in gaining user acceptance.

Alongside these developments, the CBN has reiterated its focus on maintaining the Ways and Means Advances to the federal government at a 5% threshold for the fiscal years 2024-2025.

This policy allows the CBN to provide short-term financing to cover budget deficits, capped at 5% of the previous year’s revenue. Advances must be repaid within the fiscal year to avoid long-term fiscal burdens.

The policy now includes provisions for calculating these advances by incorporating sub-accounts of MDAs linked to the Consolidated Revenue Fund, aligning with the Treasury Single Account (TSA) framework. This adjustment aims to provide a more accurate assessment of the federal government’s cash position.

Recent legislative actions have seen proposals to increase the Ways and Means threshold to 10%, a move that has raised concerns about potential inflationary impacts and economic stability.

Critics, including CBN Monetary Policy Committee member Murtala Sabo Sagagi, argue that such an increase could lead to excessive liquidity and exacerbate inflationary pressures.

In response to previous misuse and controversy surrounding the Ways and Means facility, the CBN has taken steps to address these issues. This includes restructuring outstanding loans and halting further advances until previous amounts are repaid.

Finance Minister Wale Edun has confirmed that the federal government has repaid N7.3 trillion in advances, a significant step in managing the country’s fiscal challenges.

Payment Service Providers (PSPs) have been given a 30-day deadline to align their operations with these new rules, which require compliance by 11 October 2024.

This latest development aligns with the CBN’s goal to decentralise the routing of PoS transactions, ensuring a more efficient and transparent payment process. 

Dated 11 September 2024, the circular was signed by Oladimeji Yisa Taiwo of the CBN’s Payments System Management Department. It mandates that all PoS transactions — whether physical or online — be routed through any Payment Terminal Service Aggregator (PTSA) licensed by the CBN. 

This directive expands on a previous framework that placed control of PoS routing under a single aggregator. The new guideline is intended to facilitate competition and decentralise transaction management.

In the past, the Nigeria Interbank Settlement System Plc (NIBSS) held the sole PTSA license after being granted the authority by the CBN in 2011. However, in a bid to enhance competition and improve service delivery, the CBN issued a second PTSA license to Unified Payment Services Limited (UPSL) in April 2024. 

This step is expected to reduce reliance on a single body and enhance operational transparency in Nigeria’s electronic payments industry.

Key elements of the directive include a requirement for payment service providers (PSPs) to route all PoS transactions through a CBN-licensed PTSA. 

Processors that handle these transactions must also be certified by relevant payment schemes and nominated by the acquirers, who are given the flexibility to choose their processors. 

In addition, payment terminal service providers (PTSPs) must ensure their PoS terminals are configured in line with the new routing requirements.

The CBN’s new rules also introduce monthly reporting obligations for both PTSPs and PTSAs. PTSPs must provide reports detailing the number of merchants and agents they service and how transactions are routed, while PTSAs are required to submit data on all processed transactions. 

These reports must be submitted to the Director of the Payments System Management Department within seven days of the end of each month. PSPs have been given 30 days to comply with the new guidelines and must formally notify the CBN of their compliance.

This directive comes at a time when the Corporate Affairs Commission (CAC) is taking action against Point of Sale operators that have not registered their businesses. 

The deadline for registration passed on 5 September, and the Commission is now preparing to penalise non-compliant operators, pointing to potential involvement in unlawful activities. 

Fintech groups, particularly the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), are contesting the CAC’s directive in court, arguing that the mandatory registration is unlawful.

The new PoS guidelines by the CBN aim to enhance the security and efficiency of electronic payments in Nigeria. It also aligns with the growing focus on reducing fraud in the payments sector, with a report from the Nigeria Inter-Bank Settlement System Plc (NIBSS) revealing that PoS terminals were responsible for over a quarter of fraud incidents in 2023. 

The CBN’s new measures are designed to counter such risks and ensure a safer, more transparent electronic payments environment.