The Central Bank of Nigeria (CBN) has extended the enforcement deadline for its mandatory Point of Sale (PoS) terminal geo-fencing framework to August 1, 2026, while also expanding the approved geo-fence radius for operators.
The development was disclosed in a circular dated May 29, 2026, and signed by the Director of the Payments System Supervision Department, Dr. Rakiya O. Yusuf.
In the circular, the apex bank directed banks, mobile money operators, payment service providers, switching companies, and other licensed operators within the payments ecosystem to complete all compliance processes before the new enforcement date.
The CBN said the approved geo-fence radius has been increased from 10 metres to 70 metres following consultations with stakeholders on the implementation of an earlier directive covering ISO 20022 migration and mandatory geo-tagging of payment terminals.
The revised framework is expected to give operators greater flexibility in meeting location-based monitoring requirements for PoS 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’ 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 related to location accuracy and field deployment, particularly for agency banking operators and merchants operating in areas with limited infrastructure.
The apex bank also shifted the commencement of enforcement to August 1, giving operators 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 regulatory efforts to strengthen oversight of Nigeria’s digital payments ecosystem, where PoS terminals have become a major channel for cash withdrawals, transfers, and merchant payments.
Beyond the revised deadline, the CBN directed financial institutions to resolve outstanding operational issues involving the National Central Switch before enforcement begins.
The regulator urged operators to 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.
In August 2025, 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.
The National Vice President of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), Mr. Yusuf Adeyemo, had earlier disclosed that the initial compliance timeline was unrealistic given the volume of devices currently in circulation.
He also criticised the earlier operational radius requirement, arguing that it was too restrictive for operators.
