CBN extends PoS geo-fencing deadline

By Damilare Adeleye

The Central Bank of Nigeria (CBN) has extended the enforcement deadline for its Point-of-Sale (PoS) geo-fencing policy to August 1, 2026.

This extension comes as the apex bank increased the permitted geo-fence radius from 10 meters to 70 meters as part of efforts to ease industry compliance.

The directive was contained in a circular dated May 29, 2026, and signed by the Director of the Payments System Supervision Department, Rakiya Yusuf.

The circular was addressed to Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Mobile Money Operators (MMOs), Switching and Processing Companies, Payment Terminal Service Providers (PTSPs), Payment Solution Service Providers (PSSPs), Super Agents, and other licensed operators, outlining revisions to the implementation timeline for the policy.

The apex bank stated that the changes followed engagements with stakeholders on the implementation of an earlier directive covering migration to ISO 20022 standards for payments messaging and the mandatory geo-tagging of payment terminals.

According to the CBN, the geo-fence radius is increased from 10 meters to 70 meters, and the enforcement of the PoS Terminal Geo-fence is extended to August 1, 2026.

The CBN explained that the revised measures were approved after considering stakeholders’ concerns and operational issues surrounding the implementation of the directive.

The circular noted that further to the earlier circular with reference number PSS/DIR/PUB/CIR/001/001 dated August 25, 2025, on the migration to ISO 20022 standards for payments messaging, mandatory geo-tagging of payment terminals, and various stakeholders’ engagements on the subject to address the operationalization of the policy, the Central Bank of Nigeria has considered and approved these adjustments.

To ensure compliance, the bank directed all affected institutions to submit evidence of compliance before the new enforcement date.

The circular added that evidence of compliance should be addressed to the Director of the Payments System Supervision Department no later than July 31, 2026.

The regulator further instructed financial institutions to address any outstanding technical issues with the National Central Switch ahead of the deadline.

The bank stated that financial institutions are required to resolve all operational issues with the National Central Switch within the stipulated timeline to ease compliance.

In August 2025, the CBN directed that all PoS terminals in the country be geo-tagged within 60 days as part of measures to curb fraud, strengthen oversight of digital payments, improve transaction monitoring, and enhance security within the financial system.