CBN has directed all acquirers, processors, and Payment Terminal Service Providers to implement dual connectivity for POS transactions

[Augusta]

The Central Bank of Nigeria (CBN) has directed all acquirers, processors, and Payment Terminal Service Providers (PTSPs) to implement dual connectivity for point of sale (PoS) transactions within one month, as part of efforts to strengthen transaction reliability and reduce service disruptions.

In a circular dated December 11, 2025, signed by Rakiya Yusuf, the CBN’s director of the payments system supervision department, the apex bank stated: “Mandatory Dual Connectivity –All Acquirers, Processors, and Payment Terminal Service Providers (PTSPs) shall establish and maintain active connectivity with both licensed Payments Terminal Service Aggregators (PTSAs), namely the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL).”

The directive also requires that all transaction routing systems be integrated with both aggregators to ensure uninterrupted processing and automatic failover whenever one platform experiences downtime. The CBN explained that routing systems must be able to switch seamlessly between the two providers to prevent transaction failures during disruptions

 

[gwolf666]

I believe the CBN's decision to require dual connectivity for points of sale is a very positive step toward improving the stability and reliability of the payments system in Nigeria. Implementing systems that can automatically switch between NIBSS and UPSL in the event of outages ensures that transactions are not affected by technical failures, which is crucial in an increasingly digital environment. However, I am somewhat concerned that this measure may generate additional costs for acquirers and processors, especially smaller ones, as they will need to upgrade and maintain systems that support this dual connectivity. It will also be interesting to see how institutions adapt their internal processes to meet these requirements in just one month. Overall, I believe that if managed well, this can strengthen the payments infrastructure and significantly reduce disruptions, benefiting merchants and consumers alike.

 

[eLdavis]

I don't have an issue with this as long as they don't use this as a reason to increase transaction fees or whatever.