CBN extends PoS geo-fencing deadline

The Central Bank of Nigeria has extended the enforcement deadline for the geo-fencing of Point-of-Sale (PoS) terminals to August 1, 2026, giving banks, fintech companies, mobile money operators and other payment service providers additional time to comply with the requirement.

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The extension was announced in a circular issued by the apex bank’s Payments System Supervision Department and signed by its director, Dr. Rakiya O. Yusuf. The move revises an earlier directive issued in August 2025 that introduced the adoption of ISO 20022 payment messaging standards and made geo-tagging of PoS terminals mandatory nationwide.

Geo-tagging involves assigning the precise location of a PoS terminal using geographical coordinates, while geo-fencing creates a virtual boundary around that approved location. Under the framework, each PoS terminal must be linked to a registered business location, allowing the system to detect when a device is moved beyond its authorised operating area.

The policy is aimed at improving transaction monitoring, reducing fraud and strengthening oversight of electronic payment channels across Nigeria. As part of the revised guidelines, the CBN increased the allowable geo-fence radius for PoS terminals from 10 metres to 70 metres following consultations with stakeholders and concerns raised during implementation.

According to the circular, “Geo-fence radius is hereby increased from 10 metres to 70 metres” while the “Enforcement of PoS Terminal Geo-fence is extended to August 1, 2026.” The adjustment means PoS terminals will be permitted to operate within a wider area around their registered business locations while remaining subject to location monitoring requirements.

The original directive required all existing and new payment terminals to be geo-tagged, equipped with location-tracking capabilities, integrated with the National Central Switch and migrated to the ISO 20022 payment messaging standard to improve transparency and traceability of electronic transactions.

The CBN said affected institutions must resolve outstanding operational issues relating to the National Central Switch within the revised timeline and submit evidence of compliance to the Payments System Supervision Department on or before July 31, 2026.

The policy forms part of the central bank’s broader efforts to strengthen the integrity of Nigeria’s digital payments ecosystem, improve transaction monitoring, reduce fraudulent activities and align the country’s payment infrastructure with international standards.

With the growing use of PoS terminals for cash withdrawals, transfers and merchant payments across Nigeria, regulators believe enhanced location monitoring will improve accountability and security within the financial system.