The Central Bank of Nigeria (CBN) has extended the enforcement date for the geo-fencing requirement on Point-of-Sale (PoS) terminals to August 1, 2026, giving financial institutions and payment operators additional time to comply with the directive.
The extension was announced in a circular dated May 29, 2026, issued by the apex bank and signed by the Director of the Payments System Supervision Department, Dr Rakiya Yusuf.
The directive was addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Payment Terminal Service Providers, switching companies, and other licensed players in the country’s financial technology ecosystem.
According to the CBN, the revised timeline follows consultations with industry stakeholders and ongoing implementation challenges linked to an earlier directive issued on August 25, 2025, which introduced ISO 20022 messaging standards and mandatory geo-tagging of payment terminals.
Under the initial policy, PoS operators were required to geo-tag all terminals within 60 days as part of efforts to curb fraud and enhance oversight of digital transactions.
In the latest update, the apex bank announced two key adjustments to the framework.
First, it increased the allowable geo-fencing distance for PoS operations from 10 metres to 70 metres. It also postponed full enforcement of the geo-fencing requirement to August 1, 2026.
Geo-fencing restricts PoS terminals to approved locations tied to registered merchants and agents, enabling better transaction tracking and reducing misuse of payment devices.
The CBN directed all affected institutions to ensure full compliance ahead of the new deadline and submit proof of compliance to the Payments System Supervision Department via official channels not later than July 31, 2026.
It also urged financial institutions to resolve outstanding technical and operational issues with the National Central Switch to support smooth implementation of the policy.
The regulator explained that the extension is intended to give operators sufficient time to upgrade systems, align terminal locations with regulatory standards, and address operational bottlenecks before enforcement begins.
The policy remains part of broader efforts by the CBN to strengthen Nigeria’s electronic payments system, improve monitoring of transactions, and reduce fraud in the financial sector.
