The Central Bank of Nigeria (CBN) has given banks, fintech companies and other payment service providers more time to comply with its Point-of-Sale (PoS) geo-fencing policy, pushing the enforcement deadline to August 1, 2026.
The move comes as the apex bank continues efforts to strengthen oversight of Nigeria’s fast-growing digital payment system and curb fraudulent activities linked to PoS transactions.
In a circular released on Friday, the CBN announced that the extension followed consultations with stakeholders and a review of operational challenges encountered during the implementation process.
The circular, signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf, was addressed to banks, mobile money operators, payment service providers, switching companies, super agents and other licensed participants within the country’s payment ecosystem.
One of the major changes introduced by the regulator is the expansion of the permitted geo-fence radius for PoS terminals.
Under the revised framework, the allowable operating distance for PoS terminals has been increased from 10 metres to 70 metres, giving operators greater flexibility while maintaining regulatory oversight.
Geo-fencing is a technology that restricts PoS terminals to approved locations linked to registered merchants and agents.
The policy was originally introduced to improve transaction monitoring, reduce fraud, prevent the misuse of payment channels and strengthen confidence in electronic payment systems across Nigeria.
The CBN had initially directed operators to complete the geo-tagging of all PoS terminals as part of broader reforms aimed at improving transparency and accountability within the financial sector.
However, following feedback from industry stakeholders, the regulator decided to extend the implementation timeline to allow institutions more time to resolve technical and operational challenges.
The apex bank also instructed financial institutions to address any outstanding issues with the National Central Switch to ensure smooth compliance before the new deadline.
According to the directive, all affected institutions must provide evidence of compliance to the CBN on or before July 31, 2026.
Industry observers believe the extension will help payment operators complete necessary system upgrades, align terminal locations with regulatory requirements and avoid disruptions when enforcement begins.
The latest development highlights the CBN’s ongoing push to improve the security, efficiency and reliability of Nigeria’s digital payments ecosystem as electronic transactions continue to grow nationwide.
Source: Central Bank of Nigeria (CBN)
