The CBN has extended PoS geo-fencing enforcement to August 1, 2026, and widened the permitted terminal radius

The Central Bank of Nigeria has extended the enforcement date for mandatory Point-of-Sale terminal geo-fencing to August 1, 2026, granting banks and payment operators additional time to comply with the directive aimed at tightening oversight of electronic payment channels.

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The decision was contained in a circular dated May 29, 2026, signed by the Director of the Payments System Supervision Department, Dr Rakiya Yusuf, and published on the apex bank’s website on Friday.

The circular was addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Payment Terminal Service Providers, Switching and Processing Companies, Payment Solution Service Providers, Super Agents and other licensed participants in the payments ecosystem.

According to the CBN, the extension followed engagements with industry stakeholders and operational concerns raised after the rollout of an earlier circular issued on August 25, 2025.

That directive introduced migration to ISO 20022 standards for payment messaging and mandatory geo-tagging of PoS terminals across the country.

The apex bank had initially directed operators to geo-tag all PoS terminals within 60 days as part of efforts to combat fraud, improve transaction monitoring and strengthen the integrity of Nigeria’s digital payments system.

In the latest adjustment, the CBN announced that the permissible geo-fence radius for PoS terminals had been increased from 10 metres to 70 metres.

“Geo-fence radius is hereby increased from 10 metres to 70 metres,” the circular stated.

The regulator also confirmed that enforcement of the policy would now commence on August 1, 2026.

Geo-fencing requires PoS terminals to operate only within approved geographic locations linked to merchants and agents.

The measure is designed to curb misuse of payment terminals, strengthen compliance monitoring and improve transparency within the electronic payments ecosystem.

The CBN directed all affected institutions to submit evidence of compliance before the new enforcement deadline.

“Evidence of compliance to the above should be addressed to the Director, Payments System Supervision Department via paymentdata@cbn.gov.ng not later than July 31, 2026,” the circular added.

The apex bank further instructed financial institutions to resolve outstanding operational issues with the National Central Switch to ensure seamless implementation of the policy.

Industry stakeholders are expected to use the extended timeline to complete system upgrades, align terminal locations with regulatory standards and address technical bottlenecks ahead of enforcement.

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The latest move underscores the CBN’s continued push to strengthen regulatory oversight of Nigeria’s rapidly expanding digital payment infrastructure while balancing compliance realities facing operators.