The Central Bank of Nigeria has issued a directive to Payment Service Providers (PSPs) requiring them to adhere to improved routing guidelines for Point of Sale (POS) transactions.
The move aims to enhance the monitoring of electronic transactions in Nigeria.
The directive, issued on September 11, 2024, is part of the Central Bank of Nigeria’s (CBN) plan to diversify the Payment Terminal Service Aggregator (PTSA) structure which previously operated through a single aggregator.
In a circular signed by Oladimeji Yisa Taiwo on behalf of the CBN’s Payments System Management Department, the apex bank mandated that all PoS transactions from merchant and agent locations, whether physical or electronic must now be routed through a CBN-licensed PTSA.
The directive aims to decentralize PoS transaction routing and address concerns about centralized transactions under a single entity.
