The Central Bank of Nigeria (CBN) actively moved PoS geo-fencing enforcement to August 1, 2026.
It also actively expanded the approved operating radius for PoS terminals nationwide.
Regulatory Shift Timeline
The regulator issued the update in a circular dated May 29, 2026.
Dr Rakiya O. Yusuf signed the circular as Director of Payments System Supervision.
CBN instructed banks, mobile money operators, and payment providers to meet compliance deadlines.
Licensed participants must actively complete all technical upgrades before enforcement begins.
Expanded Geo-Fencing Flexibility
The regulator increased the geo-fence radius from 10 metres to 70 metres.
This change followed consultations on ISO 20022 migration and PoS terminal geo-tagging rules.
Furthermore, geo-fencing enables regulators to track approved PoS locations more effectively.
It also strengthens transaction monitoring and reduces unauthorised terminal deployment risks.
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Additionally, CBN said the wider radius will ease operational challenges for agents and merchants.
Operators often face infrastructure limits and weak location accuracy during deployment.
Consequently, enforcement will now begin on August 1, 2026.
Operators must actively submit compliance evidence by July 31, 2026.
Moreover, CBN ordered banks to resolve National Central Switch issues before enforcement starts.
It urged stakeholders to use the transition period to improve system integration.
Digital Payments Oversight Push
In addition, this policy strengthens oversight of Nigeria’s digital payments ecosystem.
PoS terminals now drive cash withdrawals, transfers, and merchant payments actively.
Previously, in August last year, CBN issued ISO 20022 adoption directives.
It also mandated full geo-tagging of terminals by October 31, 2025.
However, industry groups like AMMBAN criticised earlier timelines as unrealistic.
They also argued that earlier radius limits restricted field operations significantly.
The regulator now allows more time for full compliance across operators.
Operators must align systems with updated geo-fencing and messaging standards.
Stakeholders raised concerns about tight deadlines and deployment challenges.
They also highlighted infrastructure gaps affecting PoS terminal accuracy.
The CBN widened the radius to improve operational practicality nationwide.
