The Central Bank of Nigeria (CBN) has issued a new directive to Payment Service Providers (PSPs), requiring them to comply with enhanced routing guidelines for Point of Sale (PoS) transactions.This move is aimed at strengthening the monitoring of electronic transactions across Nigeria.

The directive issued on Wednesday aims at strengthening the monitoring of electronic transactions across Nigeria following CBN’s initiative to diversify the Payment Terminal Service Aggregator (PTSA) structure, which previously operated through a single aggregator.

In a circular signed by Oladimeji Yisa Taiwo on behalf of the CBN Payments System Management Department, the apex bank mandates that all PoS transactions from merchant and agent locations—whether physical or electronic—must now be routed through any CBN-licensed PTSA.

The directive is part of efforts to decentralize PoS transaction routing and address concerns over the centralization of such transactions under a single entity.

In Aug. 2011, the CBN initially granted a PTSA license to the Nigeria Interbank Settlement System (NIBSS) Plc to serve as the sole aggregator of PoS transactions.However, to promote competition and enhance service delivery, the CBN awarded a second PTSA license to Unified Payment Services Limited (UPSL) on April 19.

This development aims to reduce the dependence on a single aggregator for the management of PoS transactions, promoting transparency and operational efficiency in Nigeria’s growing electronic payments landscape.