The Central Bank of Nigeria (CBN) has given key players in the payments sector only one month to adopt dual connectivity for Point-of-Sale (PoS) systems, a move aimed at reducing failures that frustrate businesses and slow commerce. This fresh directive affects acquirers, processors, fintech companies, and payment terminal service providers across the country.
Under the new rules, every PoS terminal must be configured to maintain two active connections to licensed Payment Terminal Service Aggregators: the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL). This setup will allow transactions to automatically switch from one network to the other whenever one aggregator experiences downtime or technical issues, helping to keep payments flowing without interruption.
The CBN says that linking PoS systems to both aggregators will help eliminate the “single point of failure” that has previously caused transaction slowness, network outages, and service disruptions. These problems have at times prevented merchants from completing sales, undermined customer confidence, and slowed the growth of digital commerce across urban and rural markets.
The circular, signed by Rakiya O. Yusuf, Director of the CBN’s Payments System Supervision Department, emphasizes that this one-month compliance deadline is not optional. By requiring automatic failover between networks, the regulator is pushing for a more resilient and reliable national payment infrastructure that can support the millions of daily transactions made at shops, markets, and service points nationwide.
CBN officials note that Nigeria’s PoS ecosystem has become a cornerstone of everyday commerce and financial inclusion. It enables customers to withdraw cash, receive electronic payments, pay bills, and make transfers, often more conveniently than traditional bank branches or ATMs. Ensuring these systems work reliably is seen as central to advancing a cashless economy and supporting small businesses that operate on tight margins and depend on quick, predictable transactions.
For the banking and fintech sector, dual connectivity also means new technical and operational responsibilities. Software and hardware must support seamless switching between aggregators. Payment terminal service providers will need to test, validate, and possibly upgrade systems so that routing logic works without delay when one network experiences problems. The CBN also expects both NIBSS and UPSL to perform real-time reporting and notify financial institutions within 24 hours about outages and resolutions.
Industry insiders say that in the short term, the directive may raise costs as payment service providers invest in technological upgrades and intensified monitoring systems. Some smaller operators have already expressed concern that increased compliance requirements could squeeze already thin profit margins for agents and merchants, especially those in rural or underserved regions with weaker network coverage. Analysts also warn that if providers fail to meet the deadline, further disruptions or regulatory penalties could follow.
Despite these challenges, many experts argue that the long-term benefits outweigh the transitional pains. A payment ecosystem with redundant connectivity is less prone to outages and fraud risks, boosting trust among consumers and businesses alike. Reliable PoS systems also attract foreign investment into Nigeria’s fintech sector, which has been expanding rapidly and seeking greater credibility on the global stage.
One payment sector executive noted privately that strengthening infrastructure is not only about convenience; it is also about reducing the economic costs of downtime. Every minute a payment system fails can translate into lost sales, reduced economic activity, and diminished confidence in digital channels. By insisting on dual connectivity, the CBN is effectively forcing the ecosystem to modernize and align with international norms for financial systems resilience.
The policy comes at a time when other reforms, including geo-tagging and exclusive principal arrangements for PoS agents are reshaping the payments landscape. All these changes reflect the CBN’s broader strategy to tighten regulation, reduce fraud, and drive Nigeria closer to a fully digitized economy.
