CBN Drops New Rule For PoS to Protect Users, Sets 30 Days To Comply
- The CBN has mandated dual connectivity for PoS transactions, linking systems to both NIBSS and UPSL to prevent service failures
- The new rules will help ensure automatic failover is required, so transactions switch seamlessly between aggregators during downtime
- There is a 30-day compliance deadline given to all payment service providers, with periodic tests and disruption reports mandated
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria (CBN) has issued a new directive requiring all acquirers, processors, payment terminal service providers, and aggregators to implement mandatory dual connectivity for Point-of-Sale (PoS) transactions.
The measure aims to link PoS transactions to both the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL), in a move to reduce failures associated with relying on a single transaction routing channel.
Source: Getty Images
According to the circular signed by Rakiya O. Yusuf, Director of the Payments System Supervision Department, all payment service providers must ensure their systems are configured for automatic failover.
This means that if one aggregator experiences downtime, transactions will immediately switch to the other, ensuring uninterrupted service.
The circular stated:
“Further to the enhancement of the Central Bank of Nigeria circular (Reference No. CBN/PSM/DIR/CON/CWO/051/117) dated September 11, 2024, which addresses concerns about routing all Point-of-Sale (PoS) transactions through a single aggregator."
The CBN said that NIBSS and UPSL, in partnership with regulated financial institutions, are expected to conduct periodic tests to demonstrate the effectiveness of the redundancy measures and confirm the system’s stability.
Both aggregators must also notify banks in real time during any disruption and submit formal reports to the CBN within 24 hours.
Source: Getty Images
The Central Bank of Nigeria (CBN) has given all regulated financial institutions a one-month deadline to fully implement the directive., BusinessDay reports.
The bank said that the measure is essential to reducing service disruptions that affect millions of users and to boosting confidence in electronic payments, noting that the dual-connectivity system will create a more dependable and efficient PoS network across Nigeria.
Here is a breakdown of the rules
- Dual Connectivity: All PoS must connect to NIBSS and UPSL.
- Automatic Failover: Transactions switch automatically if one aggregator fails.
- Testing: NIBSS & UPSL to regularly test system resilience.
- Downtime Reporting: Immediate alerts to banks; formal report to CBN within 24hrs.
- Deadline: Full compliance within 30 days.
PoS operators to drag CAC to court
Earlier, Legit.ng reported that the National Association of Financial Inclusion Agents in Nigeria (NAFIAN) has questioned the Corporate Affairs Commission’s (CAC) directive mandating the registration of all PoS operators.
NAFIAN argues that the commission is overstepping its authority and vowing to challenge the enforcement plan in court.
Fasasi Sarafadeen, NAFIAN’s National President, said most PoS agents are already registered with their banks, while devices are concurrently registered with the NIBSS.
Sarafadeen noted that under CBN Agent Banking guidelines, only enterprise agents not individual agents operating under personal names, are required to register with CAC.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
