CBN Extends PoS Geo-Fencing Compliance Deadline to August 2026, Expands Operational Radius to 70 Metres
By Aboki Forex —
The Central Bank of Nigeria (CBN) has pushed back the compliance date for mandatory geo-fencing of Point-of-Sale (PoS) terminals. Banks and payment service providers now have until August 1, 2026, to fully implement the policy.
The apex bank also increased the acceptable operational radius for PoS machines from 10 metres to 70 metres. This is a 600% jump.
Rakiya Mohammed, Director of the Payments System Supervision Department, signed the circular. She said the changes followed discussions with industry players over operational challenges during the rollout.
The CBN explained that the wider radius gives operators more flexibility. It also improves monitoring of terminal usage and helps cut fraud risks. The original goals of the policy remain unchanged.
Geo-fencing is designed to boost the regulator’s oversight of Nigeria’s fast-growing digital payment system. Each PoS terminal will only work within a set, agreed location. This lets banks and regulators track machines more easily, reducing financial crimes like fraud and identity theft.
In August 2025, the CBN ordered all commercial banks, microfinance banks, mobile money operators, and other licensed players to fully migrate to the ISO 20022 payment messaging standard by October 31, 2025. That deadline has also been extended.
The extension shows the operational hurdles banks and fintech firms face as Nigeria pushes to modernise its payment infrastructure, improve transaction traceability, and align with global standards under ISO 20022.
All financial institutions must now submit proof of compliance with the ISO 20022 directive to the Payments System Supervision Department by July 31, 2026.
The CBN also made geo-tagging mandatory for all payment terminals. This is meant to improve data accuracy, strengthen transaction traceability, and boost transparency across the financial system.
The directive matches global SWIFT standards and supports Nigeria’s push for a more secure and standardised payments infrastructure.
Earlier, the Association of Point of Sale Service Providers warned that its members would shut down nationwide if the CBN and the Federal Competition and Consumer Protection Commission did not step in over alleged exclusivity practices by two companies. The association said it had filed an official complaint about what it called unlawful and constant decisions that violate regulatory laws.