The Central Bank of Nigeria (CBN) has extended the deadline for the implementation of its Point of Sale (PoS) terminal geo-fencing framework to July 31, 2026, granting financial institutions and payment service providers additional time to meet compliance requirements.
The extension was announced in a circular signed by the Director of the Payments System Supervision Department, Rakiya Yusur.
The geo-fencing initiative forms part of the apex bank’s efforts to strengthen payment system security, curb fraud, and prevent the use of PoS terminals for criminal activities, including robbery and financial crimes.
Under the directive, all stakeholders within Nigeria’s payment ecosystem, including Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Mobile Money Operators (MMOs), Super Agents, and switching companies, are required to adopt the ISO 20022 payment messaging standard and geo-tag all payment terminals.
According to the circular, the CBN has also reviewed one of the key operational requirements by increasing the allowable geo-fence radius from 10 metres to 70 metres.
“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 geo-tagging of payment terminals, and various stakeholders’ engagement on the subject to address the operationalization of the Circular, the Central Bank of Nigeria has considered and approved the following:
“Geo-fence radius is hereby increased from 10 metres to 70 metres. Enforcement of PoS Terminal Geo-fence is extended to August 1, 2026,” the circular stated.
The apex bank directed all financial institutions to submit evidence of compliance to the Payments System Supervision Department on or before July 31, 2026.
“Evidence of compliance with the above should be addressed to the Director, Payments System Supervision Department via paymentdata@cbn.gov.ng not later than 31 July, 2026.
“Financial institutions are required to resolve all operational issues with the National Central Switch within the stipulated timeline to ease compliance,” the CBN added.
The geo-fencing framework is designed to ensure that PoS terminals operate only within approved geographical locations linked to registered merchants and agents. Regulators believe the measure will improve oversight of electronic payment channels and make it easier for law enforcement agencies to trace terminals used for fraudulent or criminal activities.
Industry stakeholders have welcomed the extension, noting that additional time will help operators address technical challenges and complete the necessary system upgrades required for full implementation.
The CBN has consistently emphasized that strengthening payment infrastructure and enhancing transaction security remain critical to deepening financial inclusion and maintaining confidence in Nigeria’s digital payments ecosystem.
