The Central Bank of Nigeria (CBN) has issued a strict one-month deadline for all financial institutions, payment processors, and terminal service providers to adopt dual connectivity for Point of Sale (PoS) operations.
The directive, detailed in a circular dated December 11, 2025, and signed by Rakiya Yusuf, Director of the Payments System Supervision Department, builds on an earlier policy from September 2024. It specifically targets the vulnerabilities exposed by over-reliance on single transaction channels, which have led to widespread PoS outages and frustrated millions of users across the country.
Under the new mandate, every acquirer, processor, and PoS provider must establish and maintain simultaneous active connections to both the Nigeria Inter-Bank Settlement System (NIBSS) and the Unified Payment Services Limited (UPSL). This dual-link setup is designed to create a more resilient ecosystem, minimizing downtime and ensuring seamless transactions even if one network experiences technical glitches.
"The policy aims to address frequent PoS downtime caused by reliance on a single transaction channel," the CBN stated in the circular. By diversifying connections, the apex bank seeks to "reduce dependence on any single aggregator and stabilise the country’s payment infrastructure."
To enforce compliance, the CBN has introduced rigorous testing protocols. NIBSS and UPSL are required to collaborate with regulated entities for regular redundancy and failover drills, verifying that systems can switch channels without interrupting service. These test outcomes will be incorporated into the bank's routine supervisory reviews, providing an additional layer of accountability.
The guidelines also tighten incident reporting requirements. In the event of any network failure, NIBSS and UPSL must alert affected banks immediately and deliver a comprehensive report to the Payments System Supervision Department within 24 hours. Each report must detail the root cause, the extent of the disruption, and the steps taken for resolution.
This move comes amid growing concerns over the reliability of Nigeria's cashless economy, where PoS terminals handle a significant volume of daily retail and service transactions. Industry watchers hail the update as a proactive step toward fortifying the nation's fintech landscape, potentially boosting consumer confidence and reducing economic losses from payment failures.
Financial institutions have until January 11, 2026, to fully implement the changes, with the CBN warning of potential penalties for non-compliance. As Nigeria continues its push toward a digitized financial future, this directive underscores the regulator's commitment to uninterrupted service in an increasingly mobile-first society.
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