Last week, the Central Bank of Nigeria (CBN) rolled out a new directive requiring all Point of Sale (PoS) terminals across the country to be geo-tagged within 60 days or risk being shut down after October 20.
The move, described by experts as a masterstroke in the crackdown on fraud, kidnapping and illicit financial inflows, came as a shocker to heterogeneous criminal networks. It was not predicted.
Point of Sale terminals have experienced explosive growth in Nigeria, transforming from fringe conveniences into essential financial infrastructure.
By 2024, PoS transaction values climbed to N18 trillion, a staggering 69 per cent increase from the N10.7 trillion recorded in 2023. This meant that agents numbering in the millions, replaced inaccessible automated teller machines (ATMs) and dwindling bank branches, bringing basic financial services to previously underserved communities.
Yet, with its meteoric rise came the risk as the proliferation of terminals outpaced regulatory capacity. This is because entities sometimes exploited PoS terminals for scams, unauthorised withdrawals or ransom collection, scenarios where perpetrators forced victims to transfer funds using nearby PoS machines to evade detections.
