CBN Extends PoS Geo-Fencing Enforcement Deadline To August 2026

The Central Bank of Nigeria (CBN) has extended the enforcement date for the mandatory geo-fencing of Point-of-Sale (PoS) terminals to August 1, 2026, in a move aimed at giving financial institutions and payment service providers additional time to comply with the regulatory framework.

The directive was contained in a circular dated May 29, 2026, signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf, and obtained from the apex bank’s website on Friday.

The circular was addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Switching and Processing Companies, Payment Terminal Service Providers, Payment Solution Service Providers, Super Agents and other licensed operators in the financial ecosystem.

According to the CBN, the extension followed stakeholder engagements and operational considerations arising from earlier directives issued in August 2025 on ISO 20022 migration and mandatory geo-tagging of payment terminals.

The apex bank also announced adjustments to the framework, increasing the permissible geo-fence radius for PoS terminals from 10 metres to 70 metres, in addition to shifting the enforcement deadline.

“Geo-fence radius is hereby increased from 10 metres to 70 metres,” the circular stated, adding that enforcement of the requirement has been moved to August 1, 2026.

Geo-fencing is designed to restrict PoS operations to approved merchant locations, strengthening transaction monitoring and reducing fraud within the electronic payment system.

The CBN directed all affected institutions to submit evidence of compliance on or before July 31, 2026, through the Payments System Supervision Department.

“Evidence of compliance to the above should be addressed… not later than July 31, 2026,” the circular added.

Financial institutions were also instructed to resolve all outstanding technical and operational issues with the National Central Switch to ensure seamless implementation.

The extension is expected to provide operators additional time to upgrade systems and align with regulatory requirements ahead of full enforcement.