CBN EXTENDS POS GEO-FENCING ENFORCEMENT DEADLINE TO AUGUST 2026
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By Aishat Momoh. O.
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, granting financial institutions and payment service providers additional time to comply with the regulatory requirement.
The directive was contained in a circular dated May 29, 2026, and signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf.
Addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Switching and Processing Companies, Payment Terminal Service Providers, Payment Solution Service Providers, Super Agents, and other licensed operators within Nigeria’s payments ecosystem, the circular announced adjustments to the implementation timeline and operational requirements of the policy.
According to the apex bank, the decision followed consultations with industry stakeholders and considerations arising from the implementation of an earlier circular issued on August 25, 2025, which introduced migration to ISO 20022 payment messaging standards and the mandatory geo-tagging of payment terminals.
As part of the revised framework, the CBN increased the allowable geo-fence radius for PoS terminals from 10 metres to 70 metres.
The circular stated: “Geo-fence radius is hereby increased from 10 metres to 70 metres,” while also confirming that “Enforcement of PoS Terminal Geo-fence is extended to August 1, 2026.”
Geo-fencing requires PoS terminals to operate only within approved geographic locations linked to registered merchants and agents. The measure is intended to improve transaction monitoring, curb fraud, reduce abuse of electronic payment channels, and strengthen the integrity of Nigeria’s digital payments ecosystem.
The regulator directed all affected institutions to submit evidence of compliance on or before July 31, 2026.
“Evidence of compliance to the above should be addressed to the Director, Payments System Supervision Department via [paymentdata@cbn.gov.ng](mailto:paymentdata@cbn.gov.ng) not later than July 31, 2026,” the circular stated.
The CBN also instructed financial institutions to resolve all outstanding operational and technical issues with the National Central Switch within the stipulated period to ensure seamless compliance with the policy.
“Financial institutions are required to resolve all operational issues with the National Central Switch within the stipulated timeline to ease compliance,” the circular added.
The extension is expected to provide operators with additional time to complete system upgrades, align terminal locations with regulatory requirements, and address operational challenges ahead of the new enforcement date.
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