NIGERIA: CBN Extends PoS Geo-Fencing Compliance Deadline, Expands Radius to 70 Metres

The Central Bank of Nigeria (CBN) has expanded the permissible geo-fencing radius for Point-of-Sale (PoS) terminals from 10 metres to 70 metres and extended the compliance deadline for the requirement to August 1, 2026, following extensive consultations with industry stakeholders.

The decision is expected to ease implementation challenges encountered by banks, fintech companies, mobile money operators, and other payment service providers, while maintaining the regulator's objective of strengthening transaction monitoring and combating fraud within Nigeria's electronic payments ecosystem.

The directive was contained in a circular issued by the CBN and signed by the Director of the Payments System Supervision Department, Dr. Rakiya O. Yusuf. The circular was addressed to deposit money banks, mobile money operators, switching companies, payment service providers, and other licensed participants in the payments industry.

According to the apex bank, the adjustments were made after engagements with stakeholders regarding the operationalisation of its earlier directive on the mandatory geo-tagging of payment terminals.

The circular stated: "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' engagements on the subject to address the operationalisation of the Circular, the Central Bank of Nigeria has considered and approved the following."

The CBN subsequently approved two key amendments: an increase in the geo-fence radius from 10 metres to 70 metres and an extension of the enforcement date for PoS terminal geo-fencing to August 1, 2026.

"Geo-fence radius is hereby increased from 10 metres to 70 metres. Enforcement of PoS Terminal Geo-fence is extended to August 1, 2026," the circular noted.

The regulator also directed all affected institutions to submit evidence of compliance to the Payments System Supervision Department 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 not later than July 31, 2026," the circular added.

In addition, the CBN urged financial institutions and payment service providers to resolve all outstanding operational and technical issues with the National Central Switch within the extended compliance period.

"Financial institutions are required to resolve all operational issues with the National Central Switch within the stipulated timeline to ease compliance," the regulator stated.

The geo-fencing framework forms part of the CBN's broader strategy to enhance oversight of electronic payment channels by ensuring that PoS terminals operate within approved locations and that transaction activities can be more effectively tracked and monitored.

Industry stakeholders have welcomed the extension, noting that the revised implementation timeline and expanded geo-fencing threshold will provide operators with greater flexibility to address technical constraints and deployment realities.

The latest adjustment underscores the CBN's willingness to balance regulatory objectives with operational realities, while preserving safeguards designed to enhance the integrity, transparency, and security of Nigeria's rapidly expanding digital payments landscape.

West Arekameh