Newscenter Media News The Central Bank of Nigeria has issued a 30 days ultimatum to Payment Service Providers (PSPs) in the country to adhere to the revised routing instructions for Point of Sale (PoS) transactions.
This is aimed at strengthening the monitoring of electronic transactions in the country.
The directive was issued in a circular dated September 11, 2024 by Oladimeji Yisa Taiwo, for Director, Payments System Management Department, CBN but published by the apex bank on Thursday, Sept 12, 2024.
The apex bank said the PSPs must regularise their systems and route all POS transactions through its licenced PTSAs; Nigeria Interbank Settlement System Plc (NIBSS) and Unified Unified Payment Services Limited (UPSL), and inform CBN of their compliance within 30 days from the date of the circular.
The financial regulator added that all PSPs and PTSAs are expected to submit monthly returns to CBN’s director, payments system management department, not later than seven days after the end of each month.
CBN urged PSPs and the aggregators to be guided accordingly as non-compliance would attract appropriate sanctions.
The circular reads, “In order to achieve the objective of tracking electronic transactions in Nigeria, the Central Bank of Nigeria (CBN) in August 2011, granted a Payment Terminal Service Aggregator (PTSA) licence to Nigeria Interbank Settlement System Plc (NIBSS),” the apex bank said.
“As part of efforts to mitigate the concerns regarding channelling Point of Sale (PoS) transactions through a single aggregator, the CBN on April 19, 2024, granted a second PTSA licence to Unified Payment Services Limited (UPSL).
“In furtherance of the above, the CBN hereby directs as follows: acquirers are henceforth required to route all transactions from PoS terminals at merchant and agent locations, whether on physical or electronic PoS terminals, through any CBN-licensed Payment Terminal Service Aggregator (PTSA).
“PTSAs are required to send PoS transactions to only Processors certified by the relevant Payment Scheme, nominated by the Acquirer and licensed by CBN.
“All licensed Processors must be integrated with both PTSAS, thereby allowing Acquirers the flexibility to choose which Processor(s) and PTSA to utilize
“All Payment Terminal Service Providers (PTSPs) must ensure that their PoS devices. Applications are configured to route transactions through any PTSA, as directed by the Acquirer.
“All PTSPs shall submit monthly returns to the CBN, detailing the number of merchants and agents they manage, along with the PTSA services used to route the corresponding transactions.
“Each PTSA is required to submit monthly returns to the CBN, detailing all transactions processed through their platforms.”
By Babajide Okeowo
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