The Central Bank of Nigeria (CBN) has postponed the enforcement of its mandatory Point of Sale (PoS) terminal geo-fencing framework to August 1, 2026, while significantly expanding the permitted geo-fence radius for operators.
This was according to a circular dated May 29, 2026 and signed by the Director of the Payments System Supervision Department, Dr Rakiya O. Yusuf.
According to the circular, the apex bank directed banks, mobile money operators, payment service providers, switching companies, and other licensed operators in the payments ecosystem to complete compliance processes before the new deadline.
What the circular says
According to the CBN, the approved geo-fence radius has been expanded sevenfold from 10 metres to 70 metres. The adjustment follows consultations on the implementation of an earlier directive covering ISO 20022 migration and mandatory geo-tagging of payment terminals.
The revised framework gives payment operators greater flexibility in meeting location-based monitoring requirements for PoS terminals.
- The circular 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.”
Geo-fencing enables regulators and payment infrastructure providers to track the approved operating locations of PoS devices, helping to improve transaction monitoring and curb the deployment of terminals in unauthorised areas.
The wider radius is expected to address operational challenges linked to location accuracy and field deployment, particularly for agency banking operators and merchants operating in areas with infrastructure limitations.
Operators get additional compliance window
The apex bank pushed back the commencement of enforcement to August 1, providing operators with additional time to complete technical and operational requirements.
Payment service providers are expected to submit evidence of compliance to the CBN’s Payments System Supervision Department no later than July 31, 2026.
The extension comes amid ongoing efforts by regulators to strengthen oversight of Nigeria’s digital payments ecosystem, where PoS terminals have become a major channel for cash withdrawals, transfers, and merchant payments.
Focus shifts to system readiness
Beyond the revised deadline, the CBN directed financial institutions to resolve outstanding operational issues involving the National Central Switch before enforcement begins.
The regulator said operators should use the transition period to address integration challenges and ensure seamless compliance with the location-monitoring framework.
The move signals the CBN’s determination to improve the integrity of electronic payment channels while giving stakeholders additional time to align their systems with regulatory requirements.
What you should know
In August last year, the CBN issued a circular mandating all players in Nigeria’s payments ecosystem, including Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Mobile Money Operators (MMOs), Super Agents, and switching companies to adopt the ISO 20022 messaging standard and geo-tag all payment terminals by October 31, 2025.
National Vice President of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), Mr. Yusuf Adeyemo, earlier told Nairametrics that the timeline for compliance was unrealistic given the scale of devices in circulation.
He also criticised the 100-meter operational radius set by the CBN, arguing that it is too restrictive.
