CBN Orders Banks, Fintechs to Deploy Dual Connectivity on PoS Terminals to Curb Downtime

|By Babatunji Wusu

The Central Bank of Nigeria has ordered banks, financial institutions, acquirers, and payment service providers to deploy mandatory dual connectivity on all Point of Sale terminals within the next month, as part of a renewed push to stabilise electronic payment services.

The directive, contained in a circular dated December 11 and signed by the Director of Payments System Supervision, Rakiya Yusuf, updates an earlier policy issued in September 2024. The apex bank said the measure targets recurring PoS downtime driven by operators’ dependence on a single transaction channel.

Under the new framework, acquirers, processors, and payment terminal service providers must maintain active connections with both the Nigeria Inter-Bank Settlement System and Unified Payment Services Limited. The CBN said the dual-routing model would reduce reliance on a single aggregator and strengthen resilience across the national e-payment infrastructure.

To enforce compliance, the bank mandated regular redundancy and failover tests. NIBSS and UPSL are required to collaborate with operators to validate uninterrupted service capability, with test results feeding into the CBN’s supervisory assessment. The circular also introduced stricter reporting obligations, directing the two payment switches to immediately notify banks of any downtime and file a comprehensive incident report within 24 hours, detailing the cause, impact, and corrective actions.

The move comes barely a week after the Corporate Affairs Commission ordered all unregistered PoS agents to register or face closure, warning fintech firms against sharp practices in the sector.