The Central Bank of Nigeria (CBN) has extended the permitted geo-fence radius for Point-of-Sale (PoS) terminals by 600 percent and shifted enforcement of the directive to August 1, 2026, giving banks and payment operators more time to comply with tighter monitoring rules.
In a circular signed by Rakiya Mohammed, director of the Payments System Supervision Department, the apex bank increased the allowable geo-fence radius for PoS terminals from 10 metres to 70 metres following engagements with industry stakeholders over operational challenges tied to implementation.
The move comes as the CBN intensifies oversight of Nigeria’s fast-growing digital payments ecosystem while seeking to avoid disruptions to banking and fintech operations.
The geo-fencing policy is designed to ensure that PoS terminals operate only within approved locations, enabling regulators and payment operators to track devices more accurately and curb fraud, identity theft and other illicit financial activities.
The revised timeline also delays enforcement of the geo-fencing requirement until August 1, 2026, from the earlier deadline set under the August 25, 2025 circular on migration to ISO 20022 payment messaging standards and mandatory geo-tagging of payment terminals.
