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The Central Bank of Nigeria (CBN) has extended the deadline for enforcing Point-of-Sale (PoS) terminal geo-fencing to August 1, 2026, giving banks and payment service providers more time to comply with the regulation intended to improve oversight of electronic payment systems.
The extension was contained in a circular dated May 29, 2026, and signed by the Director of the Payments System Supervision Department, Dr Rakiya Yusuf.
The directive was addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Payment Terminal Service Providers, Switching and Processing Companies, Super Agents and other licensed operators within the payments system.
According to the apex bank, the decision followed consultations with stakeholders and operational concerns arising from an earlier circular issued on August 25, 2025, which introduced mandatory geo-tagging of payment terminals and migration to ISO 20022 payment messaging standards.
The CBN had earlier directed that all PoS terminals in the country be geo-tagged as part of efforts to strengthen transaction monitoring, curb fraud and improve oversight of digital payment channels.
Under the revised framework, the apex bank increased the approved geo-fence radius for PoS terminals from 10 metres to 70 metres and postponed enforcement of the policy until August 1, 2026.
The CBN directed all affected institutions to submit evidence of compliance to the Payments System Supervision Department before July 31, 2026.
It also instructed financial institutions to resolve outstanding operational issues with the National Central Switch within the stipulated timeline to ensure smooth implementation of the policy.
The statement read: “Further to the Circular with reference number PSS/DIR/PUB/CIR/001/001 dated August 25, 2025 on migration to ISO 20022 standards for payments messaging, mandatory geotagging of payment terminals, and various stakeholders’ engagement on the subject to address the operationalization of the Circular, the Central Bank of Nigeria has considered and approved the following:
“i. Geo-fence radius is hereby increased from 10 metres to 70 metres.
“ii. Enforcement of PoS Terminal Geo-fence is extended to August 1, 2026.
“Evidence of compliance to the above should be addressed to the Director, Payments System Supervision Department via [email protected] not later than July 31, 2026.
“Financial institutions are required to resolve all operational issues with the National Central Switch within the stipulated timeline to ease compliance.”
Geo-fencing requires PoS terminals to operate only within approved geographic locations linked to registered merchants and agents.
The policy is intended to reduce abuse of payment channels and improve the integrity of the country’s electronic payment system.
The extension is expected to give operators additional time to complete technical upgrades, align terminal locations with regulatory requirements and address operational challenges ahead of the new enforcement date.
