The Central Bank of Nigeria, in its ongoing efforts to resolve issues arising from directing all Point of Sale (POS) transactions through a single aggregator, has given Acquirers, Processors, and Payment Terminal Service Providers a one-month ultimatum to implement dual-connectivity for Point-of-Sale (POS) transactions with both the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL).
The directive was contained in a circular issued by the CBN and signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf.
It says, “In furtherance of the enhancement of the Central Bank of Nigeria circular with reference number CBN/PSM/DIR/CON/CWO/051/117 dated September 11, 2024, intended to address concerns associated with routing all Point-of-Sale (POS) transactions through a single aggregator, you are required to comply with the following:
“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).
“Automatic Failover – Configure all PoS transaction routing systems to the two PTSAS to allow seamless and automatic failover during downtime or service disruption.
“Testing & Validation – NIBSS and UPSL, in collaboration with regulated Financial Institutions, shall conduct periodic tests to validate redundancy, failover effectiveness, and overall system resilience.
“System Downtime/Service Disruption: NIBSS and UPSL are required to notify the Banks in real-time of any system downtime or disruption.
“NIBSS and UPSL are required to notify the Director, Payments System Supervision Department, of any system downtime or service disruption affecting its platforms and services within 24 hours of the occurrence, stating the nature, causes, and remedied actions.
“Implementation Timeline: All regulated Financial Institutions are required to comply with this directive within one (1) month from the date of this circular.”
