The Central Bank of Nigeria (CBN) has directed all commercial banks, microfinance banks, mobile money operators, and licensed payment service providers to fully adopt the ISO 20022 standard for payment messaging by October 31, 2025.
ISO 20022 is the global data exchange format for payments, securities, trade services, cards, and foreign exchange. In a circular signed by Rakiya Yusuf, Director of the Payments System Supervision Department, the apex bank emphasized that the standard is now mandatory both locally and internationally, in line with SWIFT’s migration timeline.
The CBN announced that compliance validation exercises will begin on October 20, stressing that all local and cross-border payment messages must align with ISO 20022 requirements, including accurate payer and payee identifiers, merchant/agent details, and transaction metadata.
The directive also introduced stricter geolocation requirements for payment terminals. All devices must:
- Feature native GPS with double-frequency receivers,
- Be registered with a Payment Terminal Service Aggregator (PTSA),
- Use precise latitude and longitude coordinates of merchant/agent locations.
“As part of certification, all payment terminals must integrate the National Central Switch SDK for geolocation monitoring and geofencing,” the circular stated, adding that Android v10 will be the minimum operating system requirement. Merchant activities will also be restricted to a 10-meter geofence around the registered business location.
Furthermore, the CBN directed that all terminals and applications be certified by the National Central Switch. Terminals not routed through a PTSA will be barred from processing transactions. Existing devices must be geo-tagged within 60 days, while new terminals must be geo-tagged before activation.
The apex bank explained that the measures are designed to enhance transaction integrity, curb fraud, and ensure uniform data quality across Nigeria’s payment ecosystem.
