CBN Extends PoS Geo-Fencing Compliance Deadline to August 2026

The Central Bank of Nigeria (CBN) has extended the deadline for the mandatory geo-fencing of Point-of-Sale (PoS) terminals to August 1, 2026, granting financial institutions and payment service providers additional time to comply with the directive.

The extension was announced in a circular issued by the CBN’s Payments System Supervision Department and signed by its Director, Dr. Rakiya O. Yusuf.

The geo-fencing requirement forms part of a broader regulatory framework introduced in August 2025, which mandated the adoption of ISO 20022 payment messaging standards and enhanced location monitoring for PoS terminals nationwide.

Geo-tagging requires each PoS device to be assigned specific geographical coordinates corresponding to its registered business location, while geo-fencing establishes a virtual boundary around that location. The system is designed to detect and flag terminals that are moved outside their approved operating areas.

According to the apex bank, the measure is intended to strengthen transaction monitoring, improve accountability, reduce fraud, and enhance oversight of Nigeria’s growing digital payments ecosystem.

Following consultations with stakeholders and feedback from industry operators, the CBN also approved an increase in the permissible geo-fence radius for PoS terminals from 10 metres to 70 metres. The adjustment is expected to provide operators with greater flexibility while maintaining effective location tracking and monitoring.

Under the revised guidelines, all existing and newly deployed PoS terminals must remain geo-tagged, possess location-tracking capabilities, and be integrated with the National Central Switch. Operators are also required to migrate fully to the ISO 20022 payment messaging standard.

The CBN directed banks, fintech companies, mobile money operators, and other payment service providers to address any outstanding operational issues related to the National Central Switch before the new deadline.

Affected institutions have been instructed to submit evidence of compliance to the Payments System Supervision Department on or before July 31, 2026.

The extension is part of the central bank’s ongoing efforts to modernize Nigeria’s payment infrastructure, improve transaction transparency, strengthen security, and align the country’s financial ecosystem with global best practices.

With the increasing reliance on PoS terminals for cash withdrawals, fund transfers, and merchant payments across the country, regulators believe the enhanced monitoring framework will contribute significantly to reducing fraudulent activities and improving confidence in electronic payment systems.