The Central Bank of Nigeria (CBN) has extended the enforcement deadline for its mandatory Point of Sale (PoS) terminal geo-fencing framework to August 1, 2026, while significantly increasing the permitted operating radius for terminals from 10 metres to 70 metres.
The directive was contained in a circular dated May 29, 2026, and signed by Dr. Rakiya O. Yusuf, Director of the Payments System Supervision Department.
The extension provides banks, mobile money operators, payment service providers, switching companies, and other licensed operators additional time to meet compliance requirements and address outstanding technical issues.
Under the revised framework, the approved geo-fence radius for PoS terminals has been increased from 10 metres to 70 metres following consultations with industry stakeholders.
The CBN said the adjustment was made after reviewing implementation challenges associated with its earlier directive on ISO 20022 migration and mandatory geo-tagging of payment terminals.
The wider operating radius is expected to ease compliance pressures on agents and merchants, particularly in areas where infrastructure limitations affect location accuracy.
The apex bank directed all payment service providers to complete compliance processes and submit evidence of readiness to the Payments System Supervision Department on or before July 31, 2026.
The enforcement date has now been shifted from the earlier timeline to August 1, 2026, giving operators additional time to upgrade systems and align with regulatory requirements.
Geo-fencing technology enables regulators and payment infrastructure providers to monitor the approved locations of PoS devices, helping to prevent unauthorized deployment and strengthen transaction oversight.
The measure forms part of the CBN’s broader efforts to enhance the integrity of Nigeria’s rapidly growing digital payments ecosystem, where PoS terminals play a critical role in cash withdrawals, transfers, and merchant payments.
The CBN also instructed financial institutions to use the transition period to resolve outstanding integration and operational issues involving the National Central Switch.
The regulator emphasized that stakeholders should ensure their systems are fully prepared before enforcement begins, signaling a stronger push toward compliance and improved oversight of electronic payment channels.
