By Ed Malik, A | ed@ddnewsonline.com | posted 4th September, 2025
The POS Agents Aggregator Innovation Association of Nigeria (PAAIAN) have weighed in on the recent circular from the Central Bank of Nigeria (CBN) restricting all Point of Sale (PoS) merchant activities to within a 10-metre radius of their registered business addresses. The policy aims to enhance security, curbing fraud and strengthen oversight in Nigeria’s fast-growing payment ecosystem.
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But PAAIAN, in a swift reaction has canvassed that the new policy should urgently be reconsidered with professional assessment input, in order to avoid unintended harm to millions of Nigerians.
PAAIN’s concern centers on several contextual issues. For instance, is that in the past decade, PoS agents have been at the heart of Nigeria’s financial inclusion drive, bringing banking services to the doorsteps of underserved communities. Restricting agents to a rigid 10-metre geo-fence could reverse these gains, particularly in rural and semi-urban areas where access to brick-and-mortar banking is limited.
The majority of PoS agents operate flexibly within markets, transport hubs, campuses, street transit and communities. If the new CBN policy is upheld, it will consign operators into a cul-de-sac. Because by forcing them into fixed kiosks or shops, it will drastically reduce their customer reach, daily transactions and general traffic, thereby, threatening the livelihoods of over 1.4 million direct agents and their dependents.
Nigerians rely on PoS terminals for quick, accessible transactions. The new rule will create bottlenecks, longer queues, and fewer accessible points, undermining the very convenience that has made PoS services so successful.
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With nearly 6 million terminals to be geo-tagged within 60 days, the compliance window is unrealistically short and can lead to confusion. Smaller operators will struggle, creating a lopsided market where only large players survive.
To address the offer some recommendations to make the new policy effective and urge the CBN to consider a more practical geofence idea. For instance, 100 to 200 metres in urban areas and up to 500 metres in rural areas — to strike a balance between oversight and accessibility.
Instead of a blanket 60-day deadline, a phased approach (e.g., 6–12 months) will allow operators and agents to transition smoothly without disrupting services. In this regard, we call for urgent consultations between the CBN, fintech operators, agent associations, and civil society to co-create solutions that address fraud while sustaining financial inclusion.
To consolidate on the gains, the CBN should complement this policy with investments in geo-location technology, fraud detection systems, and agent capacity building, ensuring compliance without disempowering grassroots agents.
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PAAIAN remains committed to supporting the CBN’s objectives of a safe, secure, and inclusive financial system. However, reforms must be balanced, inclusive, and context-sensitive. We stand ready to engage constructively with regulators and stakeholders to ensure policies strengthen — not weaken — Nigeria’s digital financial ecosystem.