The Central Bank of Nigeria (CBN) has revealed plans to conduct a comprehensive recertification exercise for all active Point of Sale (POS) terminals across the country with the aim of enhancing regulatory oversight and ensurinh compliance with stringent guidelines governing the operation of POS terminals.
As part of the recertification process, an update to issuing Terminal Identification Numbers (TID) will be implemented, with each terminal assigned a unique eight-digit identifier. Additionally, POS agents will be required to furnish relevant information such as Bank Verification Numbers (BVN) and Tax Identification Numbers (TIN) during registration.
Previously, mobile money operators like Opay, Palmpay could request TIDs in bulk to expedite terminal assignments. However, under the recertification regime, acquirers, including banks and mobile money operators, must register each TID separately, providing detailed merchant information such as address, BVN or TIN, business name, and F1 Code of the acquiring bank.
Validation of POS terminal deployment at specific locations will be managed by licensed Payment Terminal Service Providers (PTSPs) such as Interswitch, ETOP, or CitiServe. These PTSPs will oversee terminal setup, deployment, and ongoing support for merchants, acting as intermediaries between banks/acquirers and Original Equipment Manufacturers (OEMs) for procurement purposes.
Although the CBN has not provided a specific timeline for the commencement of the recertification exercise, the Nigerian Interbank Settlement System (NIBSS) has been tasked with developing a geofencing plan to restrict terminal usage to registered locations. Terminals certified through this process will only be operational within their designated deployment areas, with NIBSS empowered to disable terminals if used elsewhere.
Furthermore, mobile money agents will undergo enhanced Know Your Customer (KYC) procedures to facilitate their operation of Tier-3 accounts, allowing transactions of up to ₦1 million and deposit holdings of up to ₦1 billion. This shift from Tier-1 to Tier-3 accounts is expected to result in heightened compliance standards and stricter operational protocols for agents.
The recertification plan also mandates the audit and review of agent processes by acquirer banks, Super Agents, and Mobile Money Operators (MMOs) to ensure alignment with regulatory requirements. Despite ongoing efforts to seek clarification on certain aspects of the certification process, mobile money operators remain vigilant in adapting to the evolving regulatory landscape governing POS terminal operations.