The Central Bank of Nigeria (CBN) has moved the deadline for the implementation of its mandatory Point of Sale (PoS) terminal geo-fencing policy, allowing payment service providers more time to comply with the requirements.
The apex bank announced the extension in a circular issued on Friday and signed by the Director, Payments System Supervision Department, Rakiya Yusur, it was reported. Under the new arrangement, enforcement of the policy will begin on August 1, 2026 instead of the earlier date.
The geo-fencing initiative was first announced in August 2025 when the CBN ordered all PoS terminals nationwide to be geo-tagged within 60 days.
The measure is part of wider efforts to enhance monitoring of electronic payments, curb fraud and align Nigeria’s payment system with the ISO 20022 messaging standard.
The directive affects key players in the financial sector which include Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Super Agents and switching companies. These institutions are expected to roll out the required messaging standard and ensure that payment terminals are geo-tagged properly.
With the latest changes, the CBN has increased the allowable geo-fence radius for PoS terminals from 10 metres to 70 metres. The change is expected to give operators more flexibility, while still controlling where terminals are used.
Geo-fencing is a system to restrict PoS terminals to approved locations of registered merchants and agents. The policy is aimed at helping authorities better track transactions, prevent the misuse of payment channels, and boost confidence in the country’s digital payment system.
The central bank said the decision follows engagements with stakeholders and considerations around the practical implementation of the framework. The extension is aimed at providing affected institutions with enough time to complete the technical and operational processes needed for full compliance.
Besides complying by the new deadline, all affected institutions have been directed to submit proof of compliance to the CBN’s Payments System Supervision Department on or before July 31, 2026.
The regulator also directed financial institutions to resolve any pending operational issues with the National Central Switch within the approved time line. The CBN explained that resolving these issues quickly will help institutions comply with the geo-fencing requirements before the enforcement date in August.
