CBN Gives PoS Operators 30 Days’ Ultimatum to Connect System to NIBSS, UPSL or Risk Shutdown

By Emmanuel Kwada 

In a bold stroke to fortify Nigeria’s digital payment ecosystem against disruptions and foster redundancy, the Central Bank of Nigeria (CBN) has slapped a one-month deadline on all point-of-sale (PoS) terminal providers to integrate dual connectivity with the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL).

The mandate, if unmet, could sideline non-compliant operators from the lucrative PoS market, amplifying the apex bank’s crusade for a seamless cashless economy.

The directive, detailed in a circular dated December 11, 2025, and unveiled on Friday, bears the signature of Rakiya Yusuf, CBN’s Director of the Payments System Supervision Department. It targets a broad swath of stakeholders; acquirers, processors, and payment terminal service providers (PTSPs)—requiring them to wire their systems for simultaneous access to both NIBSS and UPSL platforms by January 11, 2026.

“This is non-negotiable: Dual connectivity isn’t just a technical upgrade; it’s a firewall against single points of failure that have plagued our transactions in the past,” Yusuf emphasized in the circular, underscoring the CBN’s zero-tolerance for vulnerabilities exposed by recent network glitches and cyber threats.

The move builds on Nigeria’s aggressive pivot to electronic payments, where PoS terminals have surged as lifelines for millions amid persistent cash shortages and naira redesign woes.

Under the new rules, every PoS deployment must route transactions through both settlement giants, ensuring uninterrupted service if one falters.

NIBSS, the backbone of interbank transfers, and UPSL, a key player in card processing, will now serve as twin pillars, theoretically slashing downtime and boosting transaction speeds—a godsend for the teeming street vendors, retailers, and agents who process billions in daily volume.

Industry insiders hailed the policy as a “game-changer,” but not without caveats. “It’s a smart hedge against black swan events, like the 2023 network outages that cost businesses millions,” said fintech analyst Tunde Afolabi, founder of PayStack Insights.

“Yet, for smaller PTSPs scraping by on thin margins, this could mean hefty compliance costs—upgrades, testing, and training that might force consolidations or exits.”

The CBN, however, sweetened the pot with a grace period for implementation, while dangling the carrot of enhanced security and regulatory favor for early adopters. Non-compliance? Expect enforcement teeth: Fines, license suspensions, or outright bans from the PoS ecosystem, per the circular’s stern warnings.

This isn’t the CBN’s first rodeo in tightening the payment reins. Recall the 2024 crackdown on crypto gateways and the ongoing war on illicit forex trades—moves that have reshaped Africa’s largest economy’s financial frontier.

With PoS fraud losses topping ₦50 billion last year, per industry reports, the dual-link order doubles down on resilience, potentially unlocking more investor confidence in Nigeria’s $400 billion digital payments arena.