CBN Shifts PoS Geo‑fencing Enforcement To August 1, Expands Radius To 70m

The Central Bank of Nigeria (CBN) has shifted the enforcement of its mandatory Point-of-Sale (PoS) terminal geo-fencing rule to August 1, 2026, and expanded the allowable geo-fence radius from 10 metres to 70 metres.

In a circular dated May 29, 2026,and  signed by the director of the Payments System Supervision Department, Dr Rakiya O. Yusuf, the CBN asked banks, mobile money operators, payment service providers, switching firms and other licensed participants to complete compliance processes before the new deadline.

According to the circular, payment service providers must submit evidence of compliance to the CBN’s Payments System Supervision Department by July 31, 2026.

The apex bank said the change follows consultations on earlier directives covering migration to the ISO 20022 messaging standard and the mandatory geotagging of payment terminals.

The regulator said the sevenfold increase in the geo-fence radius — from 10m to 70m — will give operators greater flexibility in meeting location-monitoring requirements and help address accuracy and field-deployment challenges, particularly for agency banking and merchants in areas with limited infrastructure.

“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 operationalisation 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,” the circular said.

Geo-fencing allows regulators and payment infrastructure providers track approved operating locations for PoS devices, improving transaction monitoring and limiting deployment of terminals in unauthorised areas.

The CBN said the extension to August 1 will give operators extra time to complete technical and operational requirements and resolve integration issues with the National Central Switch before enforcement begins.

The move forms part of regulatory efforts to strengthen oversight of Nigeria’s rapidly growing digital payments ecosystem, where PoS terminals are widely used for cash withdrawals, transfers and merchant payments.

Recall that last August, the CBN directed all players in the payments ecosystem — including deposit money banks, microfinance banks, mobile money operators, super agents and switching companies — to adopt ISO 20022 and geotag payment terminals by October 31, 2025.

Industry representatives had criticised the original timeline and operational limits.

Yusuf Adeyemo, national vice-president of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), previously described the initial compliance window as unrealistic and said earlier radius proposals were too restrictive.