The Central Bank of Nigeria (CBN) has pushed the deadline for geo-fencing Point-of-Sale (PoS) terminals to 1 August 2026, giving banks and payment firms more time to comply.
In a circular dated 29 May, signed by the director of its Payments System Supervision Department, Dr Rakiya Yusuf, the bank also widened the permitted geo-fence radius. “Geo-fence radius is hereby increased from 10 metres to 70 metres,” the circular said.
The measure revises an August 2025 directive that made geo-tagging of PoS terminals mandatory and required migration to the ISO 20022 payment messaging standard. Geo-tagging fixes a terminal’s location by coordinates, while geo-fencing draws a virtual boundary around it, flagging any device moved beyond its registered business location.
The policy aims to improve transaction monitoring, curb fraud and tighten oversight of electronic payments. It applies across the sector, from banks and microfinance banks to mobile money operators, switching companies and super agents.
The CBN said affected institutions must resolve outstanding issues with the National Central Switch and submit evidence of compliance to the supervision department by 31 July 2026.
The wider radius followed stakeholder consultations over operational challenges during implementation. Regulators say tighter location monitoring will boost accountability and security as PoS terminals are increasingly used for cash withdrawals, transfers and merchant payments.
