The Central Bank of Nigeria (CBN) has rescheduled the enforcement of its mandatory Point of Sale (PoS) terminal geo-fencing framework to August 1, 2026, while simultaneously expanding the permissible geo-fence radius for operators. This development was detailed in a circular dated May 29, 2026, signed by Dr. Rakiya O. Yusuf, Director of the Payments System Supervision Department.
According to the circular, the apex bank has directed banks, mobile money operators, payment service providers, switching companies, and other licensed entities within the payments ecosystem to finalize compliance procedures before the new deadline. The approved geo-fence radius has been increased sevenfold, from 10 metres to 70 metres, following consultations on the implementation of an earlier directive concerning ISO 20022 migration and mandatory geo-tagging of payment terminals. This revised framework offers payment operators greater flexibility in meeting location-based monitoring requirements for PoS terminals.
Geo-fencing enables regulators and payment infrastructure providers to track the approved operating locations of PoS devices, thereby improving transaction monitoring and curbing the deployment of terminals in unauthorized areas. The wider radius is expected to address operational challenges related to location accuracy and field deployment, particularly for agency banking operators and merchants in areas with infrastructure limitations. The CBN postponed the enforcement commencement to August 1, granting operators additional time to complete technical and operational requirements. Payment service providers must submit evidence of compliance to the CBN’s Payments System Supervision Department no later than July 31, 2026.
This extension occurs amid ongoing regulatory efforts to strengthen oversight of Nigeria’s digital payments ecosystem, where PoS terminals have become a major channel for cash withdrawals, transfers, and merchant payments. Beyond the revised deadline, the CBN directed financial institutions to resolve outstanding operational issues involving the National Central Switch before enforcement begins. The regulator stated that operators should use the transition period to address integration challenges and ensure seamless compliance with the location-monitoring framework. The move signals the CBN’s determination to improve the integrity of electronic payment channels while providing stakeholders with additional time to adapt.
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