CBN gives PoS terminal providers one month to connect system to NIBSS and UPSL

CBN Gives PoS Terminal Providers One Month to Connect Systems to NIBSS and UPSL

The Central Bank of Nigeria (CBN) has issued a decisive directive requiring all Point of Sale (PoS) terminal providers, acquirers, processors, and Payment Terminal Service Providers (PTSPs) to establish mandatory dual connectivity with the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL) within one month.

This move, announced in a circular dated December 11, 2025 and signed by Rakiya Yusuf, Director of the Payments System Supervision Department, is aimed at strengthening Nigeria’s cashless payment ecosystem and addressing persistent transaction failures.

The directive builds upon an earlier policy issued in September 2024, where the CBN highlighted the risks of relying on a single routing channel for PoS transactions. That reliance had led to frequent delays, service breakdowns, and operational disruptions across the financial system.

By mandating dual connectivity, the apex bank seeks to ensure that PoS transactions can seamlessly switch between NIBSS and UPSL whenever one network experiences downtime, thereby guaranteeing uninterrupted transaction processing.

The circular emphasizes that all acquirers, processors, and PTSPs must maintain active connectivity with both licensed Payment Terminal Service Aggregators (PTSAs). This requirement is not optional; it is a regulatory obligation designed to eliminate systemic vulnerabilities.

The CBN explained that the dual-connectivity framework will enhance resilience, reduce transaction failures, and improve customer confidence in electronic payment channels. It also aligns with the broader national strategy to deepen financial inclusion and promote a robust digital economy.

For PoS operators and service providers, the implications are significant. They must immediately begin technical integration with both NIBSS and UPSL, ensuring that their systems are capable of routing transactions through either aggregator.

This may involve infrastructure upgrades, compliance checks, and coordination with both switching platforms. Failure to comply within the stipulated one-month deadline could expose providers to regulatory sanctions, as the CBN has made clear its determination to enforce the directive strictly.

From a consumer perspective, the policy promises to reduce the frustration of failed PoS transactions, which have been a recurring issue in Nigeria’s payment landscape.

Customers often face declined transactions despite having sufficient funds, largely due to network failures or routing bottlenecks.

With dual connectivity, the likelihood of such failures is expected to drop significantly, creating a smoother and more reliable payment experience.

CBN’s one-month deadline for PoS terminal providers to connect to both NIBSS and UPSL represents a critical step in modernizing Nigeria’s payment infrastructure. It addresses longstanding weaknesses in transaction routing, enhances system resilience, and supports the country’s cashless policy objectives.

The directive underscores the regulator’s commitment to ensuring that financial technology serves the needs of businesses and consumers effectively, while safeguarding the stability of the financial system.