The Central Bank of Nigeria (CBN) has issued a directive giving financial institutions a 30-day window to route all Point-of-Sale (PoS) transactions through the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL). This move aims to streamline transaction processing, improve efficiency, and enhance regulatory oversight within the country’s payments ecosystem.
According to the CBN, the directive applies to all banks, payment service providers, and other financial institutions handling PoS transactions across Nigeria. The central bank emphasized that routing PoS transactions through NIBSS and UPSL will standardize processing, reduce duplication, and ensure secure, transparent settlement of funds.
The 30-day compliance period highlights the urgency of the policy, signaling the CBN’s commitment to ensuring that all financial institutions adhere to the new framework without delay. Institutions failing to comply may face regulatory scrutiny or sanctions, reinforcing the central bank’s focus on maintaining operational integrity in the payments sector.
Routing PoS transactions via NIBSS and UPSL also offers several benefits for both businesses and consumers. For merchants, it promises faster transaction settlement, enhanced reconciliation processes, and reduced operational risks. For customers, the move is expected to improve transaction reliability, security, and transparency, making everyday payments smoother and more consistent.
This directive is part of the CBN’s broader effort to strengthen Nigeria’s digital payments ecosystem, reduce fragmentation among payment channels, and drive financial inclusion. By consolidating PoS transactions under centralized platforms like NIBSS and UPSL, the central bank aims to improve oversight, data collection, and fraud monitoring capabilities, ensuring that the country’s growing fintech sector operates efficiently and securely.
Industry observers note that this policy aligns with global best practices, where centralized payment processing helps reduce systemic risks and enhances confidence in electronic payment systems. As Nigeria continues to expand digital payment adoption, particularly among SMEs and retail businesses, policies like this are crucial to safeguarding the stability of the financial ecosystem.
Financial institutions are now tasked with upgrading their infrastructure and integrating fully with NIBSS and UPSL within the 30-day timeline. This may involve software updates, testing, and staff training to ensure seamless migration without disruption to merchant services. The CBN has indicated that it will closely monitor compliance and provide support where necessary to facilitate the transition.
Overall, the directive reflects the CBN’s proactive approach to modernizing Nigeria’s payments landscape, promoting efficiency, and protecting the interests of both merchants and consumers. With the 30-day deadline now in effect, financial institutions are expected to move quickly to ensure compliance and support the central bank’s vision of a more robust, secure, and standardized digital payments ecosystem.
