CBN Directs Banks, Fintechs to Implement Mandatory Dual Connectivity for PoS Transactions

The Central Bank of Nigeria (CBN) has issued a new directive ordering all banks, fintechs, acquirers, processors, and payment terminal service providers to fully implement dual connectivity for Point of Sale (PoS) transactions within one month.

The directive, contained in a circular dated December 11, 2025, and signed by Rakiya Yusuf, Director of Payments System Supervision, updates an earlier regulation first introduced in September 2024.

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According to the CBN, the policy is aimed at eliminating the persistent PoS transaction failures caused by operators relying on a single processing channel. With dual connectivity, institutions will be required to maintain active, functional links to both the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL).

The apex bank says the measure will significantly improve payment reliability and strengthen the resilience of the country’s electronic payments infrastructure.

CBN Enforces Redundancy Tests and Stricter Reporting

To ensure compliance, the CBN has also introduced compulsory redundancy and failover tests. NIBSS and UPSL will jointly work with regulated institutions to verify that their systems can maintain uninterrupted service in the event of downtime. The outcome of these tests will be included in the CBN’s supervisory reviews.

The circular also mandates:

Immediate notification of any downtime by NIBSS or UPSL

Submission of a full incident report within 24 hours, detailing the cause, impact, and corrective actions

“The policy aims to address frequent PoS downtime caused by overreliance on a single transaction channel,” the CBN said.

Comes Amid Broader Industry Cleanup

This latest directive follows closely after the Corporate Affairs Commission (CAC) ordered all unregistered PoS operators to complete CAC registration or face enforcement actions, an announcement that has sparked heated debate across the fintech and agent-banking ecosystem.

The combined directives from the CBN and CAC signal a tightening regulatory environment for Nigeria’s fast-growing PoS and mobile money sector.