The Central Bank of Nigeria (CBN) has issued a fresh directive mandating all Point of Sale (PoS) terminal service providers to establish dual system connectivity with the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL) within one month. The move is aimed at strengthening transaction reliability, improving system resilience, and significantly reducing service disruptions across Nigeria’s rapidly expanding digital payments ecosystem.
The directive, contained in a circular dated December 11, 2025, was signed by Rakiya Yusuf, Director of the Payments System Supervision Department at the apex bank. It applies to all acquirers, processors, and Payment Terminal Service Providers (PTSPs) operating within the Nigerian financial system.
According to the CBN, the new requirement is part of ongoing efforts to enhance the stability of electronic payment infrastructure, particularly as PoS transactions continue to play a critical role in financial inclusion, retail commerce, and daily economic activities across the country.
In the circular, the CBN stated unequivocally that compliance is no longer optional. “Mandatory Dual Connectivity – All Acquirers, Processors, and Payment Terminal Service Providers (PTSPs) shall establish and maintain active connectivity with both licensed Payments Terminal Service Aggregators (PTSAs), namely the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL),” the directive read.
The apex bank explained that the dual connectivity framework is designed to eliminate single points of failure in PoS transaction processing. By requiring providers to connect to both aggregators, the CBN aims to ensure that transactions can continue seamlessly even if one platform experiences technical challenges or downtime.
To this end, the directive further mandates that all transaction routing systems used by PoS providers must be fully integrated with both NIBSS and UPSL. These systems, the CBN said, must be capable of automatically switching between the two aggregators whenever one becomes unavailable.
“The routing systems must be configured to ensure uninterrupted transaction processing through automatic failover whenever one platform experiences downtime,” the circular stated.
This automatic failover mechanism is expected to drastically reduce failed transactions, delays, and customer frustration that have become common during system outages. Over the years, Nigerians have frequently complained about declined transactions, debits without value, and prolonged downtime affecting PoS services, especially during peak business hours.
The CBN noted that redundancy alone is not sufficient without proper validation. As such, it also mandated regular testing of the dual connectivity infrastructure to ensure its effectiveness.
“Testing and Validation – NIBSS and UPSL, in collaboration with regulated financial institutions, shall conduct periodic tests to validate redundancy, failover effectiveness, and overall system resilience,” the circular said.
These periodic tests are intended to assess how quickly and effectively systems can switch between aggregators during disruptions, as well as to identify potential weaknesses before they impact customers. The CBN emphasized that such proactive measures are critical to maintaining confidence in Nigeria’s payment system.
In addition to strengthening technical resilience, the directive introduces stricter reporting obligations for the two licensed payment terminal service aggregators. The CBN instructed both NIBSS and UPSL to promptly notify the regulator of any service disruptions affecting their platforms.
“NIBSS and UPSL are required to notify the Director, Payments System Supervision Department, of any system downtime or service disruption affecting its platforms and services within 24 hours of the occurrence,” the circular stated. The notification must include details of the nature of the disruption, its root causes, and the remedial actions taken to restore services.
The apex bank said this reporting requirement is intended to enhance regulatory oversight, improve transparency, and enable faster intervention where necessary. By receiving timely information on system failures, the CBN believes it can better coordinate responses and prevent prolonged outages that negatively affect businesses and consumers.
The directive comes at a time when PoS terminals have become a backbone of Nigeria’s cashless economy. With limited access to bank branches and ATMs in many areas, PoS operators now serve as critical access points for cash withdrawals, transfers, bill payments, and retail transactions, particularly in rural and semi-urban communities.
Industry analysts say the CBN’s move reflects growing concern about the operational risks posed by frequent service interruptions, especially as transaction volumes continue to rise. According to sector data, millions of PoS transactions are processed daily, making system reliability a national economic priority.
The CBN also stressed that all regulated financial institutions and service providers must comply fully with the directive within the stipulated timeframe. “All regulated financial institutions are required to comply with this directive within one (1) month from the date of this circular,” the bank warned.
Failure to comply, industry observers note, could expose providers to regulatory sanctions, including fines or restrictions on operations, as the CBN continues to tighten oversight of the payments sector.
While some PoS providers may face initial costs associated with upgrading infrastructure and integrating dual routing systems, experts argue that the long-term benefits outweigh the challenges. Improved system stability, reduced transaction failures, and enhanced customer trust are expected to strengthen the overall payments ecosystem.
The directive also aligns with the CBN’s broader digital finance agenda, which prioritises resilience, interoperability, and consumer protection. As Nigeria pushes deeper into electronic payments and reduced cash usage, the regulator has repeatedly emphasized the need for robust infrastructure capable of supporting increased demand without compromising reliability.
With the one-month deadline now in effect, PoS terminal providers, banks, and payment processors are expected to accelerate compliance efforts to meet the new standards. For millions of Nigerians who rely on PoS services daily, the CBN’s directive offers the prospect of fewer disruptions and a more dependable digital payment experience.
