The Central Bank of Nigeria (CBN) has pushed back the deadline for the implementation of its mandatory Point of Sale (PoS) terminal geo-fencing policy, providing payment service providers with more time to meet the requirements.
The apex bank announced the extension in a circular issued on Friday and signed by the Director, Payments System Supervision Department, Rakiya Yusur, it was reported. Under the new arrangement, enforcement of the policy will begin on August 1, 2026 instead of the earlier date.
The geo-fencing initiative was first announced in August 2025 when the CBN mandated that all PoS terminals across the country be Geo-tagged within 60 days.
The measure is part of wider efforts to improve monitoring of electronic payments, cut fraud and align Nigeria’s payment system with the ISO 20022 messaging standard.
The directive affects major players in the financial sector, namely Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Super Agents and switching companies. These institutions are expected to roll out the required messaging standard and ensure that payment terminals are geo-tagged properly.
The CBN brought about the latest changes by raising the maximum geo-fence radius for PoS terminals from 10 metres to 70 metres. The change is expected to give operators more flexibility, while still controlling where terminals are used.
Geo-fencing is a system to restrict PoS terminals to approved locations of registered merchants and agents. The policy is designed to assist authorities in better monitoring transactions, preventing the misuse of payment channels, and boosting confidence in the country’s digital payment system.
The central bank said the decision follows engagements with stakeholders and considerations around the practical implementation of the framework. The extension is intended to allow affected institutions adequate time to complete the technical and operational processes necessary to achieve full compliance.
Besides complying by the new deadline, all affected institutions have been directed to submit proof of compliance to the CBN’s Payments System Supervision Department on or before July 31, 2026.
The regulator also directed financial institutions to resolve all pending operational issues with the National Central Switch within the approved time line. CBN said prompt resolution of these issues will aid institutions to meet the geo-fencing requirements ahead of the enforcement date in August.
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