CBN Sets October 31 Deadline for Banks to Upgrade to ISO 20022 and Geo-Tag Payment Terminals
The Central Bank of Nigeria (CBN) has directed all financial institutions and payment service providers to complete the migration to the ISO 20022 messaging standard and implement mandatory geo-tagging of payment terminals by October 31, 2025. This directive affects Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Switching and Processing Companies, Payment Terminal Service Providers, Super Agents, and other licensed operators in the Nigerian payment ecosystem.
In a circular released on its website and signed by the Director of Payments System Supervision, Dr. Rakiya Yusuf, the apex bank emphasized that ISO 20022 is the global benchmark for payment messaging and aligns with SWIFT’s international migration timeline. The CBN said this upgrade will standardize quality data across the country’s financial system and improve payment security and efficiency.
“All payment transaction messages exchanged domestically or internationally must now follow the ISO 20022 format as specified by CBN and SWIFT,” the circular stated. Financial institutions are also required to ensure accurate inclusion of mandatory data elements such as payer and payee identifiers, merchant and agent details, and transaction metadata. Compliance checks will begin on October 20, 2025, ahead of the deadline, with penalties for institutions that fail to meet the requirements.
Beyond the messaging upgrade, the CBN has introduced compulsory geo-tagging of all payment terminals to enhance transaction monitoring and curb electronic payment fraud. Terminals must have native geolocation services enabled with double-frequency GPS receivers and operate on a minimum Android OS version 10 for compatibility with the National Central Switch’s monitoring system. The regulator further noted that terminals not routed through a Payment Terminal Service Aggregator (PTSA) will be prohibited from processing transactions.
The apex bank explained that these reforms aim to strengthen Nigeria’s payment infrastructure, boost transparency, and align with global best practices. “All existing terminals must be geo-tagged within 60 days of this circular, while new terminals must be geo-tagged before certification and activation,” the directive added.
Source: The sun