Central Bank of Nigeria has extended the enforcement deadline for the mandatory Point of Sale (PoS) terminal geo-fencing framework to August 1, 2026, while approving a wider operational radius for payment service operators across the country.
The new directive was contained in a circular dated May 29, 2026, and signed by the Director of the Payments System Supervision Department, Dr. Rakiya O. Yusuf.
Under the revised framework, the approved geo-fence radius for PoS terminals has been expanded from 10 metres to 70 metres following engagements with stakeholders in Nigeria’s digital payments ecosystem.
Brandspur Banking News Desk reports that the extension provides banks, mobile money operators, switching companies, payment service providers, and other licensed financial institutions with additional time to complete compliance processes before enforcement begins.
The updated framework follows earlier regulatory directives linked to the migration to ISO 20022 payment messaging standards and the mandatory geo-tagging of electronic payment terminals nationwide.
Geo-fencing technology allows regulators and payment infrastructure providers to monitor the approved operating locations of PoS devices, helping to strengthen transaction oversight and reduce the use of terminals in unauthorised locations.
Industry stakeholders had previously raised concerns over the initial operational limitations, citing challenges associated with location accuracy, field deployment, and network infrastructure, especially in rural and underserved areas.
The expanded 70-metre radius is expected to improve operational flexibility for agency banking operators, merchants, and payment service providers managing large numbers of terminals across multiple locations.
The apex bank also directed operators to submit evidence of compliance to the Payments System Supervision Department on or before July 31, 2026.
Beyond extending the enforcement timeline, the CBN instructed financial institutions to use the transition period to resolve outstanding operational and integration issues involving the National Central Switch and related payment infrastructure.
The regulator said the additional compliance window is intended to ensure system readiness and seamless implementation of the location-monitoring framework before full enforcement commences.
Nigeria’s digital payments ecosystem has experienced rapid growth in recent years, with PoS terminals becoming one of the country’s most widely used channels for cash withdrawals, funds transfers, and merchant transactions.
The latest move by the CBN signals continued efforts by the regulator to improve transparency, strengthen oversight, and enhance the integrity of electronic payment systems across the financial sector.
The geo-tagging policy was first introduced in August 2025, when the CBN mandated Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Super Agents, and switching firms to adopt ISO 20022 standards and geo-tag all payment terminals nationwide.
