The Central Bank of Nigeria (CBN) has directed all Payment Service Providers (PSPs) to connect to Payment Terminal Service Aggregators, in its quest to track all electronic transactions.
The directive was contained in a circular referenced: PSM/DIR/CON/CWO/051/117 and dated September 11, 2024.
According to the circular signed by the Director of Payment Services Management Department of the bank, Mr. Oladimeji Taiwo, the CBN took the decision to make PoS transactions more transparent and flexible in the operations and ensure that they play according to the rules.
The directive required all PTSPs to submit monthly returns to the CBN, detailing the number of merchants and agents they manage, along with the PTSA services used to route the corresponding transactions.
In addition, each PTSA is required to submit monthly returns to the CBN, detailing all transactions processed through their platforms, with the two submission to be made not later than seven days after the end of each month.
The apex bank warned that non-compliance would attract sanctions against any player that breaches the directives.
The circular reads in full: “In order to achieve the objective of tracking electronic transactions in Nigeria, the Central Bank of Nigeria (CBN) in August 2011, granted a Payment Terminal Service Aggregator (PTSA) licence to Nigeria Interbank Settlement System PIc (NIBSS), As part of efforts to mitigate the concerns regarding channeling all Point of Sale (PoS) transactions through a single aggregator, the CBN on April 19, 2024, granted a second PTSA licence to Unified Payment Services Limited (UPSL.
“In furtherance of the above, the CBN hereby directs as follows:
“Acquirers are henceforth required to route all transactions from Pos terminals at merchant and agent locations, Whether on physical or electronic Pos terminals, through any CBN-licensed Payment Terminal Service Aggregator (PTSA)
“PTSAs are required to Lend Pos transactions to only Processors certified by the relevant Payment Scheme, nominated by the Acquirer and licensed by CBN.
“All licensed Processors must be integrated with both PTSAs, thereby allowing Acquirers the flexibility to choose which Processors) and PTSA to utilize.
“All Payment Terminal Service Providers (PTSPs) must ensure that their PoS devices and applications are configured to route transactions through any PTSA, as directed by the Acquirer.
“AIl PTSPs shall submit monthly returns to the CBN, detailing the number of merchants and agents they manage, along with the PTSA services used to route the corresponding transactions
“Each PTSA is required to submit monthly returns to the CBN, detailing all transactions processed through their platforms.
“The returns mentioned in items (5) and (6) above are expected to be submitted to the Director, Payments System Management Department, not later than seven (7) days after the end of each month.
Consequently, you are hereby directed to commence regularisation with the PTSAs and notify the CBN in writing to confirm compliance, within 30 days from the date of this Circular. Please be guided accordingly as non-compliance shall attract appropriate sanctions.”
