The Central Bank of Nigeria (CBN) has issued a critical one-month deadline to all banks, financial institutions, acquirers, and payment service providers, mandating a comprehensive overhaul of how Point-of-Sale (PoS) transactions are routed. This directive, outlined in a circular dated December 11, 2025, and signed by Rakiya Yusuf, Director of the Payments System Supervision Department, represents a significant push to mitigate system downtime and bolster Nigeria’s digital payments infrastructure.

The updated guidance specifically compels industry stakeholders to adopt dual connectivity to the nation’s two licensed Payment Terminal Service Aggregators (PTSAs): the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL). Under this new policy, all PoS transactions, whether originating from physical terminals or electronic channels, must be actively linked to both NIBSS and UPSL. This dual linkage ensures that transaction flows can seamlessly switch between platforms if one aggregator encounters technical difficulties, a feature known as automatic failover capability. This mechanism is central to the CBN’s strategy to combat the frequent breakdowns and bottlenecks that have historically plagued systems reliant on a single routing channel.

Beyond enhanced connectivity, the CBN is implementing a more stringent framework for resilience and oversight across the entire payments ecosystem. NIBSS and UPSL are now required to collaborate with regulated institutions to validate that their systems are fully capable of supporting uninterrupted transactions. The results of these tests will be incorporated into the CBN’s ongoing oversight processes. Furthermore, in the event of downtime or system disruptions, both aggregators must immediately notify affected banks and submit a detailed report to the Payments System Supervision Department within 24 hours, elucidating the causes, impacts, and corrective measures undertaken.

The central bank’s deadline effectively gives institutions until mid-January 2026 to successfully integrate, configure, and demonstrate full compliance with this updated framework. While the circular did not specify particular penalties, failure to adhere to this timeline could result in regulatory sanctions.

This directive carries substantial implications for Nigeria’s payments landscape. PoS terminals remain a crucial pillar of Nigeria’s drive towards a cashless economy, facilitating millions of daily transactions across retail, services, and informal sectors. Persistent network outages and failed transactions have long been a source of frustration for both merchants and consumers, consequently eroding confidence in the broader digital financial ecosystem. By mandating dual connectivity and automatic switching between service aggregators, the CBN aims to significantly reduce single points of failure, enhance transaction success rates, and strengthen overall system reliability. This move is particularly vital as electronic payments continue their rapid expansion across the country. The directive also builds upon earlier CBN initiatives, such as requirements for geo-tagging PoS devices and the migration to modern messaging standards, all contributing to the regulator’s broader objective of modernizing Nigeria’s payment infrastructure and improving the oversight of electronic transactions.