The Central Bank of Nigeria (CBN) has granted Point of Sale (PoS) operators, banks, and payment service providers additional time to comply with its mandatory geo-fencing framework, extending the enforcement deadline to August 1, 2026.
In a circular dated May 29, 2026, and signed by Dr. Rakiya O. Yusuf, Director of the Payments System Supervision Department, the apex bank also expanded the approved operating radius for PoS terminals from 10 metres to 70 metres.
The extension offers relief to banks, mobile money operators, switching companies, and other licensed payment providers that have been working to meet the new compliance requirements amid ongoing technical and operational challenges.
According to the CBN, the decision to widen the geo-fence radius followed consultations with industry stakeholders and a review of implementation difficulties linked to its earlier directive on ISO 20022 migration and mandatory geo-tagging of payment terminals.
By increasing the permitted operating range, the regulator aims to reduce compliance burdens on PoS agents and merchants, particularly in locations where infrastructure limitations can affect accurate location tracking.
The CBN directed all payment service providers to complete their compliance processes and submit evidence of readiness to the Payments System Supervision Department on or before July 31, 2026.
The enforcement date, previously scheduled for an earlier timeline, will now take effect on August 1, giving operators more time to upgrade systems and align with regulatory standards.
Geo-fencing technology allows regulators and payment infrastructure providers to monitor the approved locations of PoS terminals, helping to curb unauthorized deployment and improve transaction oversight.
The measure is part of the CBN’s broader efforts to strengthen the integrity of Nigeria’s fast-growing digital payments ecosystem, where PoS terminals remain a vital channel for cash withdrawals, transfers, and merchant payments.
The apex bank also urged financial institutions to use the transition period to address outstanding integration and operational issues involving the National Central Switch, stressing the need for full system readiness before enforcement begins.
