The Central Bank of Nigeria (CBN) has announced an extension of the enforcement deadline for the geo-fencing of Point-of-Sale (PoS) terminals, moving it to August 1, 2026. This decision provides banks, fintech companies, mobile money operators, and other payment service providers with additional time to meet the compliance requirements.
The extension was detailed in a circular from the CBN’s Payments System Supervision Department, signed by its director, Dr. Rakiya O. Yusuf. This revision modifies an earlier directive from August 2025, which mandated the adoption of ISO 20022 payment messaging standards and the mandatory geo-tagging of all PoS terminals across the country.
Geo-tagging refers to assigning precise geographical coordinates to each PoS terminal, while geo-fencing creates a virtual boundary around its approved operating location. Under the new framework, each terminal must be linked to a registered business location, enabling the system to detect any unauthorized movement of the device beyond its designated area.
The primary objectives of this policy are to enhance transaction monitoring, reduce fraud, and strengthen oversight of electronic payment channels in Nigeria. As part of the updated guidelines, the CBN has increased the allowable geo-fence radius for PoS terminals from 10 meters to 70 meters. This adjustment follows consultations with stakeholders and feedback received during the implementation phase.
According to the circular, “Geo-fence radius is hereby increased from 10 metres to 70 metres,” and “Enforcement of PoS Terminal Geo-fence is extended to August 1, 2026.” This means PoS terminals can now operate within a wider area around their registered business locations while still being subject to location monitoring requirements.
The original directive required all existing and new payment terminals to be geo-tagged, equipped with location-tracking capabilities, integrated with the National Central Switch, and migrated to the ISO 20022 payment messaging standard. These measures aim to improve transparency and traceability of electronic transactions.
The CBN has instructed affected institutions to resolve any outstanding operational issues related to the National Central Switch within the revised timeline and to submit evidence of compliance to the Payments System Supervision Department by July 31, 2026.
This policy is part of the central bank’s broader efforts to strengthen the integrity of Nigeria’s digital payments ecosystem, improve transaction monitoring, reduce fraudulent activities, and align the country’s payment infrastructure with international standards. With the increasing use of PoS terminals for cash withdrawals, transfers, and merchant payments across Nigeria, regulators believe that enhanced location monitoring will improve accountability and security within the financial system.
