CBN directs PoS providers to link NIBSS, UPSL in 30 days

The Central Bank of Nigeria (CBN) has mandated all acquirers, processors, payment terminal service aggregators and providers to establish dual connectivity with the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL) within one month. The new directive aims to eliminate persistent Point of Sale (PoS) transaction failures.

The directive contained in circular PSS/DIR/PUB/CIR/001/002 signed by Rakiya Yusuf, CBN director of the payments system supervision department builds on a September 2024 policy to end reliance on single routing channels that have plagued the nation’s cashless payments ecosystem.

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Under the rules, “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).”

PoS systems must enable automatic failover to ensure seamless switches during outages, a measure targeting frequent disruptions that frustrate merchants and consumers across retail and informal sectors.

NIBSS and UPSL will conduct periodic tests with financial institutions to validate redundancy and resilience, with results feeding into CBN oversight.

NIBSS and UPSL must also alert banks in real time during downtime and submit detailed reports to Yusuf’s department within 24 hours.

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“NIBSS and UPSL are required to notify the Banks in real-time of any system downtime or disruption,” the circular states, while also mandating disclosure of causes and remedies.

The one-month clock—expiring around mid-January 2026—intensifies pressure on an industry handling millions of daily transactions amid Nigeria’s push for digital finance.

PoS downtime has eroded trust, with previous CBN moves like August’s geo-tagging rules failing to fully resolve glitches. Industry executives welcomed the fix but flagged integration costs.

“This dual connectivity is intended to reduce dependence on any single aggregator and stabilise the payment infrastructure,” one payments analyst said, noting it could lift success rates above 95%.

Fintech leaders predict smoother e-commerce and remittances, though smaller PTSPs worry about compliance timelines.

Onyinye Nwachukwu

Onyinye Nwachukwu is the Abuja Bureau Chief of BusinessDay, overseeing coverage across Abuja and Northern Nigeria. With more than two decades of experience in economic and financial journalism, she reports on business, policy, and market trends, linking local developments to the global economy. A fellow of the International Monetary Fund (IMF) and recipient of the P. Vishwanathan Memorial Award for Excellence in Financial Journalism, she is known for her insightful storytelling and interviews with senior policymakers, diplomats, and business leaders. Well traveled and globally minded, Onyinye brings depth and international perspective to her reporting.