The Central Bank of Nigeria (CBN) has set an October 31, 2025, deadline for all banks, mobile money operators, and other financial institutions to fully adopt the new global payment messaging standard, ISO 20022. The directive, issued in a new circular, also mandates that all payment terminals must have geo-tagging capabilities.
This move is aimed at creating a more standardised and secure payment system in Nigeria. Starting October 20, 2025, the CBN will begin validation checks to ensure that all domestic and international payment messages are formatted correctly according to the new standard.
What the New Rules Mean
For Financial Messaging:
The ISO 20022 is an international standard that provides a common language for financial information, making it easier for banks to communicate with each other globally. To comply, financial institutions must ensure that all paym\ent messages include specific and accurate details about the payer, payee, and transaction.
For Payment Terminals:
All existing and new payment terminals must have native geolocation services enabled, including GPS, to accurately pinpoint the location of a transaction. Each terminal must be registered with a Payment Terminal Service Aggregator (PTSA) and have a geofence radius of no more than 10 meters around the registered business. This data must be included in every transaction message.
The CBN has also specified that only terminals running on Android OS version 10 or higher will be supported, and all terminals must be certified by the National Central Switch. Existing terminals must be geo-tagged within 60 days of the circular, while new ones must comply before they are even activated.
