Central Bank of Nigeria (CBN) has extended the enforcement date for the geo-fencing of Point-of-Sale (PoS) terminals to Aug. 1, 2026, granting banks, fintech firms, mobile money operators and other payment service providers additional time to comply with the directive.
The extension was contained in a circular issued by the CBN’s Payments System Supervision Department and signed by its Director, Dr. Rakiya O. Yusuf.
The apex bank said the decision followed consultations with stakeholders in the payments ecosystem and a review of operational challenges encountered during implementation.
The latest directive amends an earlier circular issued on Aug. 25, 2025, which introduced the migration to ISO 20022 payment messaging standards and mandated the geo-tagging and geo-fencing of payment terminals across the country.
Under the revised framework, the CBN increased the allowable geo-fence radius for PoS terminals from 10 metres to 70 metres.
According to the circular, “Geo-fence radius is hereby increased from 10 metres to 70 metres,” while the “Enforcement of PoS Terminal Geo-fence is extended to August 1, 2026.”
Geo-tagging involves assigning the precise geographical location of a PoS terminal using coordinates, while geo-fencing creates a virtual boundary around that approved location.
The policy requires every PoS terminal to be linked to a registered business location, enabling operators and regulators to detect when a terminal is moved beyond its approved operational area.
The CBN said the measure is aimed at strengthening transaction monitoring, improving traceability of payment devices, curbing fraud and enhancing oversight of electronic payment activities.
With the revised guideline, PoS terminals will now be allowed to operate within a wider geographical range around their registered locations, providing greater flexibility for merchants, agents, banks and payment service providers.
The apex bank also directed all affected institutions to resolve outstanding integration issues relating to the National Central Switch before the new enforcement deadline.
In addition, operators are required to submit evidence of compliance to the Payments System Supervision Department on or before July 31, 2026.
The CBN noted that the geo-fencing requirement forms part of broader reforms aimed at strengthening the integrity of Nigeria’s digital payments ecosystem and aligning the country’s payment infrastructure with global standards.
The policy is also expected to improve accountability in electronic transactions and support efforts to combat fraud as the use of PoS terminals continues to expand across the country for cash withdrawals, transfers and merchant payments.
Industry stakeholders have welcomed the extension, saying the additional time and wider operating radius will help address implementation challenges while preserving the objectives of enhanced monitoring and security within the financial system.
