The Central Bank of Nigeria (CBN) has extended the enforcement date for the mandatory geo-fencing of Point-of-Sale (PoS) terminals to August 1, 2026, allowing banks and payment service providers more time to comply with the regulation.
The directive was contained in a circular dated May 29, 2026, signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf.
The circular was addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Payment Service Providers, Switching Companies, Super Agents, and other operators within Nigeria’s electronic payment ecosystem.
According to the apex bank, the decision followed consultations with industry stakeholders and operational reviews linked to an earlier directive issued in August 2025 on ISO 20022 migration standards and mandatory geo-tagging of payment terminals.
The CBN also announced an adjustment to the geo-fencing framework by increasing the approved operational radius for PoS terminals from 10 metres to 70 metres.
“Geo-fence radius is hereby increased from 10 metres to 70 metres,” the circular stated.
The regulator explained that geo-fencing is designed to ensure PoS terminals operate only within approved business locations tied to merchants and agents, as part of efforts to strengthen transaction monitoring, reduce fraud, and improve oversight of digital payment channels.
The apex bank directed all affected institutions to submit evidence of compliance before July 31, 2026.
It also instructed financial institutions to resolve pending operational and technical issues with the National Central Switch to ensure smooth implementation of the policy.
The extension is expected to give operators additional time to complete system upgrades, align terminal locations with regulatory requirements, and address operational challenges before full enforcement begins in August 2026.
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