CBN Eases PoS Operating Rules, Extends Compliance Deadline to 2026
By Aboki Forex —
The Central Bank of Nigeria has relaxed one of its strictest Point of Sale operating rules. In a circular dated May 29, 2026, the apex bank expanded the permitted operating radius for PoS terminals from 10 metres to 70 metres. The compliance deadline for the new geo-fencing framework has been extended to August 1, 2026.
Why the change?
Industry stakeholders complained that the earlier 10-metre restriction was too rigid. They said it was difficult to implement across Nigeria’s vast agent banking network. The CBN listened and gave agents and merchants more room to operate. The move aims to balance oversight with the reality on the ground.
What is geo-fencing?
The geo-fencing policy was first introduced in August 2025. It requires payment service providers like Moniepoint, OPay, and PalmPay to geo-tag all PoS terminals. Each terminal must be linked to specific GPS coordinates. This allows regulators to track where transactions originate and monitor terminal movement. Originally, devices could only operate within 10 metres of their registered location.
Fraud concerns drive regulation
Nigeria’s PoS sector has grown explosively. As of March 2025, there were 8.36 million registered PoS terminals, with 5.90 million actively deployed. PoS transactions hit ₦10.51 trillion in the first quarter of 2025. That is a 301.67% increase from the same period in 2024. But rapid growth has raised fraud risks. Authorities worry that some terminals are moved to unregistered locations. This creates opportunities for fraud, money laundering, and other illicit activities.
New compliance requirements
Under the updated rules, all payment terminals must be registered with a Payment Terminal Service Aggregator. Operators can use either NIBSS or Unified Payment Services Limited. They must provide accurate latitude and longitude coordinates for every merchant or agent location. Terminals not routed through a PTSA are prohibited from processing transactions. All devices and applications must also be certified by the National Central Switch.
Deadline extension
Payment companies now have until July 31, 2026 to submit evidence of compliance. The new enforcement date is August 1, 2026. This gives financial institutions and operators more time to address technical and operational challenges. The CBN expects all stakeholders to meet the deadline.
The regulator is trying to find a middle ground. It wants to strengthen oversight without disrupting the millions of Nigerians who depend on PoS services for cash and daily transactions.