CBN orders PoS operators to connect to NIBSS, UPSL within 30 days

The Central Bank of Nigeria (CBN) has directed all Point of Sale (PoS) operators and payment service providers to establish dual connectivity with the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL) within 30 days to curb persistent transaction failures.

The directive, contained in a circular titled PSS/DIR/PUB/CIR/001/002 and signed by Rakiya Yusuf, Director of the Payments System Supervision Department, applies to all acquirers, processors, payment terminal service aggregators and providers.

According to the CBN, the policy builds on its September 2024 decision to end reliance on single transaction routing channels, which have repeatedly caused disruptions in Nigeria’s cashless payment ecosystem.

Under the new rules, all PoS operators must maintain active connections with both licensed payment terminal service aggregators—NIBSS and UPSL—and configure their systems to allow automatic failover, ensuring seamless switching during outages.

The apex bank said the measure is aimed at reducing frequent service disruptions that affect merchants and customers across the retail and informal sectors.

To ensure compliance and system resilience, NIBSS and UPSL are mandated to carry out regular tests with financial institutions and report the outcomes to the CBN. They are also required to notify banks in real time of any system downtime and submit detailed incident reports to the Payments System Supervision Department within 24 hours, including causes and remedial actions.

The 30-day deadline, which runs until mid-January 2026, places added pressure on an industry that processes millions of transactions daily as Nigeria deepens its drive toward digital financial services.

PoS transaction failures have remained a major concern, despite earlier interventions by the CBN, including the introduction of geo-tagging rules in August. While industry players have welcomed the dual-connectivity requirement as a step toward stabilising payment infrastructure, some operators have raised concerns about integration costs and tight timelines.

Analysts believe the move could significantly improve transaction success rates and boost confidence in electronic payments, though smaller payment terminal service providers may face challenges meeting the compliance deadline.