The Central Bank of Nigeria (CBN) has ordered all licensed payment operators to adopt ISO 20022 messaging and geo-tagging of terminals by October 31, 2025.
In a circular dated August 25, 2025, and signed by Dr. Rakiya O. Yusuf, Director of the Payments System Supervision Department, the CBN said ISO 20022 is now the global standard for payment messaging. The directive covers Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Switching firms, PTSPs, PSSPs, Super Agents, and other licensed entities.
Alignment with Global Standards
The regulator explained that the move aligns with SWIFT’s global migration timeline. All domestic and cross-border payment messages must now follow ISO 20022 formats.
Institutions must capture mandatory details such as payer and payee identifiers, merchant codes, and transaction metadata. The CBN stressed that the October deadline is final and warned that non-compliant firms risk sanctions.
Mandatory Geo-Tagging of Terminals
The directive also introduced mandatory geo-tagging of payment terminals. All new and existing devices must support built-in GPS with dual-frequency receivers.
Each terminal must link to a merchant’s business location with precise latitude and longitude. Devices must also register under a Payment Terminal Service Aggregator (PTSA). Terminals not connected through a PTSA will be blocked.
To improve oversight, the CBN set Android OS version 10 as the minimum requirement for all payment terminals. Existing terminals must be geo-tagged within 60 days, while new devices must comply before certification. Compliance checks will begin on October 20, 2025.
ISO 20022 allows richer transaction details, including identifiers and remittance information. This improves fraud detection, speeds up cross-border payments, and enhances transparency.
Geo-tagging ensures PoS machines and other terminals remain in authorised locations. It also boosts confidence in digital transactions and helps regulators track underserved areas.
Together, these reforms aim to strengthen Nigeria’s payment infrastructure and align with international best practices.
Source: Nairametrics
