The Central Bank of Nigeria has shifted the enforcement date for its Point-of-Sale (PoS) terminal geo-fencing policy to August 1, 2026, giving banks and other payment operators more time to meet compliance requirements designed to tighten supervision of electronic transactions.
The new timeline was announced in a circular dated May 29, 2026, published on the apex bank’s website. The document was signed by the Director of the Payments System Supervision Department, Dr Rakiya Yusuf.
The circular was addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Switching and Processing Companies, Payment Terminal Service Providers, Payment Solution Service Providers, Super Agents, and other licensed participants in Nigeria’s financial payments ecosystem. It formally revised the implementation schedule for the geo-fencing framework.
According to the bank, the adjustment followed consultations with stakeholders and a review of issues arising from the earlier circular issued on August 25, 2025, which introduced migration to ISO 20022 payment messaging standards alongside mandatory geo-tagging of payment terminals.
News Round The Clock had earlier reported that the apex bank required all PoS terminals nationwide to be geo-tagged within 60 days, as part of efforts to reduce fraud and improve oversight of digital payment channels.
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The latest circular stated, “Further to the Circular with reference number PSS/DIR/PUB/CIR/001/001 dated August 25, 2025 on migration to ISO 20022 standards for payments messaging, mandatory geo-tagging of payment terminals, and various stakeholders’ engagement on the subject to address the operationalisation of the Circular, the Central Bank of Nigeria has considered and approved the following.”
In the revised framework, the CBN announced two major changes. First, it expanded the allowable geo-fence radius for PoS terminals from 10 metres to 70 metres. Second, it extended the enforcement deadline for compliance.
The circular stated, “Geo-fence radius is hereby increased from 10 metres to 70 metres,” and added that, “Enforcement of PoS Terminal Geo-fence is extended to August 1, 2026.”
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Geo-fencing restricts PoS devices to approved merchant or agent locations, helping regulators track transactions more effectively and reduce misuse within the payment system.
The apex bank directed all affected institutions to submit proof of compliance before the new deadline. It also specified that submissions should be sent to the Director, Payments System Supervision Department via paymentdata@cbn.gov.ng, no later than July 31, 2026.
The circular read, “Evidence of compliance to the above should be addressed to the Director, Payments System Supervision Department via paymentdata@cbn.gov.ng not later than July 31, 2026.”
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Financial institutions were further instructed to resolve outstanding technical and operational issues with the Nigeria Inter-Bank Settlement System (National Central Switch) to ensure smooth implementation of the policy.
“Financial institutions are required to resolve all operational issues with the National Central Switch within the stipulated timeline to ease compliance,” the circular stated.
The extension is expected to give operators additional time to upgrade systems, align terminal locations with regulatory standards, and address existing operational challenges before enforcement begins in August 2026.
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