The Central Bank of Nigeria (CBN) 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 directive.
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 circular revises an earlier directive issued in August 2025, which introduced the adoption of ISO 20022 payment messaging standards and made geo-tagging of PoS terminals compulsory nationwide.
Geo-tagging involves assigning precise geographical coordinates to PoS terminals, while geo-fencing creates a virtual boundary around the approved operating location. Under the framework, each terminal must be linked to a registered business address, enabling regulators to detect when a device is used outside its authorised area.
The policy is aimed at improving transaction monitoring, reducing fraud, and strengthening oversight of electronic payment systems in Nigeria. Following stakeholder consultations, the CBN also adjusted implementation guidelines, increasing the allowable geo-fence radius from 10 metres to 70 metres.
According to the circular, “Geo-fence radius is hereby increased from 10 metres to 70 metres,” while “Enforcement of PoS Terminal Geo-fence is extended to August 1, 2026.” The adjustment allows terminals to operate within a wider perimeter around registered locations while still remaining subject to monitoring requirements.
The original directive mandated all existing and new PoS 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 enhance transparency and traceability in electronic transactions.
The CBN further directed affected institutions to resolve outstanding operational issues related 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 is part of broader efforts by the apex bank to strengthen Nigeria’s digital payments ecosystem, improve transaction monitoring, reduce fraudulent activities, and align the country’s financial infrastructure with global standards.
With PoS usage now widespread across the country for withdrawals, transfers, and merchant payments, regulators say enhanced location tracking will improve accountability and security within the financial system.