In a decisive move to strengthen the resilience of Nigeria’s digital payments infrastructure, the Central Bank of Nigeria (CBN), has directed all acquirers, processors, and payment terminal service providers (PTSPs), to implement mandatory dual connectivity with the Nigeria Inter-Bank Settlement System (NIBSS), and Unified Payment Services Limited (UPSL), for Point-of-Sale (PoS), transactions. The directive sets a one-month deadline for full compliance.
The announcement was made in a circular dated December 11, 2025, signed by Rakiya Yusuf, Director of the CBN’s Payments System Supervision Department, and released on Friday. This update reinforces a previous directive issued on September 11, 2025, which instructed payment service providers to route all PoS transactions through both NIBSS and UPSL.
Mandatory Dual Connectivity
According to the CBN circular: “All Acquirers, Processors, and Payment Terminal Service Providers (PTSPs), shall establish and maintain active connectivity with both licensed Payment Terminal Service Aggregators (PTSAs), namely NIBSS and UPSL.”
The apex bank emphasized that all transaction routing systems must be integrated with both PTSAs to guarantee uninterrupted service and automatic failover in the event of downtime or service disruptions. This dual connectivity ensures that PoS transactions can continue seamlessly if one aggregator experiences technical issues, eliminating a longstanding single point of failure in the Nigerian payment ecosystem.
Testing, Validation, and Reporting
The CBN requires NIBSS and UPSL, in collaboration with regulated financial institutions, to conduct periodic tests to validate system redundancy, failover effectiveness, and overall resilience.
Additionally, the circular mandates that both aggregators notify banks and the CBN in real-time of any system downtime or disruption. Reports must be submitted within 24 hours, detailing the nature, causes, and remedial actions taken.
Industry Compliance Timeline
All regulated financial institutions and payment terminal service providers are required to comply with the directive within one month from the date of the circular, effectively setting a mid-January 2026 deadline for implementation. Non-compliance could attract regulatory sanctions under the CBN’s supervisory framework.
Impact on Nigeria’s Payments Landscape
PoS terminals are critical to Nigeria’s cashless economy, serving millions of merchants—from informal vendors to major retailers. Frequent service disruptions have historically led to lost sales, consumer frustration, and lower confidence in digital payments.
Industry analysts note that the CBN’s dual connectivity mandate is likely to:
- Reduce PoS service interruptions by introducing system redundancy.
- Boost consumer confidence in electronic payments.
- Encourage greater adoption of cashless transactions across Nigeria.
- Promote competition between aggregators and improve overall system resilience.
- The move aligns with the CBN’s ongoing strategy to modernise Nigeria’s payment ecosystem, which includes prior directives such as PoS device geotagging to enhance tracking, compliance, and fraud prevention.
Looking Ahead
As the one-month deadline approaches, banks, fintech companies, and PoS terminal providers are expected to accelerate system upgrades and integration efforts. Successful implementation of dual connectivity could mark a significant milestone in improving reliability, stability, and efficiency across Nigeria’s electronic payment channels.
