CBN Drops Fresh Deadline For PoS Operators, Announces New Terminal Rules

The Central Bank of Nigeria (CBN) has extended the implementation date for its mandatory geo-fencing policy for Point of Sale (PoS) terminals, granting payment service providers additional time to comply with the regulatory requirements.

According to a circular issued by the apex bank and signed by the Director of the Payments System Supervision Department, Rakiya Yusur, enforcement of the policy will now commence on August 1, 2026, replacing the earlier deadline previously communicated to stakeholders.

Industry reports indicate that the geo-fencing framework was initially introduced in August 2025, with the CBN directing that all PoS terminals nationwide be geo-tagged within a 60-day period. The initiative forms part of broader measures aimed at strengthening oversight of electronic payment transactions, curbing fraudulent activities, and ensuring alignment with the internationally recognised ISO 20022 messaging standard.

The directive applies to a wide range of financial institutions, including Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Super Agents, and switching companies. These entities are expected to adopt the required messaging infrastructure and ensure that all payment terminals are accurately geo-tagged.

In a significant adjustment to the framework, the CBN increased the permissible geo-fence radius for PoS terminals from 10 metres to 70 metres. The revision is expected to offer operators greater operational flexibility while maintaining regulatory oversight of terminal locations and usage.

Geo-fencing technology restricts PoS terminals to approved locations linked to registered merchants and agents. The policy is intended to enhance transaction traceability, prevent abuse of payment channels, and bolster confidence in Nigeria’s growing digital payments ecosystem.

The central bank explained that the extension followed consultations with stakeholders and an assessment of implementation challenges. The additional time is expected to enable affected institutions to complete the technical and operational processes necessary for full compliance.

The regulator further directed all affected institutions to submit evidence of compliance to its Payments System Supervision Department on or before July 31, 2026. Financial institutions were also urged to resolve any outstanding operational issues with the National Central Switch within the stipulated timeframe to ensure seamless adherence to the geo-fencing requirements ahead of the enforcement date.