The Central Bank of Nigeria (CBN) has extended the enforcement deadline for the mandatory geo-fencing of Point-of-Sale (PoS) terminals to August 1, 2026.
With this, the apex bank has granted banks and other payment service providers additional time to comply with the regulation aimed at strengthening oversight of electronic payment transactions.
The extension, announced in a circular signed by the Director of the Payments System Supervision Department, Dr Rakiya Yusuf, comes amid ongoing efforts by operators to align their systems with the apex bank’s payment infrastructure reforms, including the migration to ISO 20022 payment messaging standards.
According to the apex bank, the decision followed engagements with stakeholders and a review of implementation challenges associated with an earlier directive issued on August 25, 2025, which introduced mandatory geo-tagging of payment terminals alongside the migration to ISO 20022 payment messaging standards.
Under the revised framework, the CBN increased the permissible geo-fence radius for PoS terminals from 10 metres to 70 metres.
The adjustment is expected to provide greater operational flexibility for merchants, agents, and payment service providers while maintaining transaction monitoring capabilities.
Geo-fencing requires PoS terminals to operate within approved geographic locations linked to registered merchants and agents. The policy forms part of the regulator’s efforts to curb fraud, improve transaction traceability, and strengthen the integrity of Nigeria’s digital payments ecosystem.
The latest extension comes nearly a year after the CBN directed operators to geo-tag all PoS terminals nationwide as part of broader reforms targeted at improving transparency and accountability in electronic payment channels.
Financial institutions, including Deposit Money Banks (DMBs), microfinance banks, mobile money operators, payment terminal service providers, payment solution service providers, super agents, and switching companies, have been directed to submit evidence of compliance to the Payments System Supervision Department on or before July 31, 2026.
The regulator also instructed affected institutions to resolve outstanding technical and operational issues with the National Central Switch ahead of the new enforcement date.
Industry stakeholders are expected to use the additional compliance window to complete system upgrades, align terminal deployment with regulatory requirements, and address operational bottlenecks that could hinder implementation.
CBN Extends PoS Geo-Fencing Compliance Deadline to August 1
The Central Bank of Nigeria (CBN) has extended the enforcement deadline for the mandatory geo-fencing of Point-of-Sale (PoS) terminals to August 1, 2026.
With this, the apex bank has granted banks and other payment service providers additional time to comply with the regulation aimed at strengthening oversight of electronic payment transactions.
The extension, announced in a circular signed by the Director of the Payments System Supervision Department, Dr Rakiya Yusuf, comes amid ongoing efforts by operators to align their systems with the apex bank’s payment infrastructure reforms, including the migration to ISO 20022 payment messaging standards.
According to the apex bank, the decision followed engagements with stakeholders and a review of implementation challenges associated with an earlier directive issued on August 25, 2025, which introduced mandatory geo-tagging of payment terminals alongside the migration to ISO 20022 payment messaging standards.
Under the revised framework, the CBN increased the permissible geo-fence radius for PoS terminals from 10 metres to 70 metres.
The adjustment is expected to provide greater operational flexibility for merchants, agents, and payment service providers while maintaining transaction monitoring capabilities.
Geo-fencing requires PoS terminals to operate within approved geographic locations linked to registered merchants and agents. The policy forms part of the regulator’s efforts to curb fraud, improve transaction traceability, and strengthen the integrity of Nigeria’s digital payments ecosystem.
The latest extension comes nearly a year after the CBN directed operators to geo-tag all PoS terminals nationwide as part of broader reforms targeted at improving transparency and accountability in electronic payment channels.
Financial institutions, including Deposit Money Banks (DMBs), microfinance banks, mobile money operators, payment terminal service providers, payment solution service providers, super agents, and switching companies, have been directed to submit evidence of compliance to the Payments System Supervision Department on or before July 31, 2026.
The regulator also instructed affected institutions to resolve outstanding technical and operational issues with the National Central Switch ahead of the new enforcement date.
Industry stakeholders are expected to use the additional compliance window to complete system upgrades, align terminal deployment with regulatory requirements, and address operational bottlenecks that could hinder implementation.
