CBN Expands Operating Perimeter of PoS Operators to 70 Metres
- The Central Bank of Nigeria has relaxed Point of Sale operating rules, expanding the radius from 10 to 70 metres
- The compliance deadline for the new geo-fencing framework has been extended to August 1, 2026, aiding industry adaptation
- Rapid growth in Nigeria's PoS sector raises fraud concerns, prompting regulatory measures to ensure oversight
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s payment agents and merchants have received a major regulatory reprieve after the Central Bank of Nigeria (CBN) relaxed one of its strictest Point of Sale (PoS) 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 and pushed the enforcement deadline for its geo-fencing framework to August 1, 2026.
Source: Getty Images
The move comes after concerns from industry stakeholders that the earlier restriction was too rigid and difficult to implement across Nigeria’s vast agent banking network.
CBN eases geo-gencing restrictions
The geo-fencing policy was first introduced in August 2025 as part of efforts to strengthen oversight of Nigeria’s rapidly expanding PoS ecosystem.
Under the framework, payment service providers and operators, including Moniepoint, OPay, and PalmPay, are required to geo-tag all PoS terminals and link them to specific GPS coordinates.
The system allows regulators to track where transactions originate and monitor the movement of terminals.
Originally, PoS devices were restricted to operating within a 10-metre radius of their registered business locations.
The CBN said the measure was designed to reduce fraud, prevent identity masking, and stop terminals from being moved to unregistered locations, according to a report by TechCabal.
However, following operational concerns raised by industry players, the regulator has now widened the allowable radius to 70 metres, offering agents and merchants greater flexibility while maintaining oversight.
Compliance deadline extended
Alongside the revised operating radius, the CBN granted payment companies additional time to comply with the directive.
According to the circular, evidence of compliance must be submitted to the Director of the Payments System Supervision Department through the designated CBN channel no later than July 31, 2026.
The new enforcement date of August 1 gives financial institutions and payment operators more time to address technical and operational challenges associated with geo-fencing implementation.
Nigeria’s booming PoS market
The regulatory review comes amid explosive growth in Nigeria’s PoS sector.
Since their introduction in 2013, PoS terminals have evolved into one of the country’s most important channels for accessing cash and conducting everyday financial transactions.
Industry data shows there are approximately 1,600 PoS agents per square kilometre across the country. As of March 2025, Nigeria had 8.36 million registered PoS terminals, with about 5.90 million actively deployed.
Transaction volumes have also surged. PoS transactions reached a record ₦10.51 trillion in the first quarter of 2025, representing a staggering 301.67% increase compared to the same period in 2024.
Fraud prevention remains a priority
While the sector’s rapid expansion has improved financial inclusion, it has also heightened regulatory concerns.
Authorities worry that some terminals are being used outside their registered locations, creating opportunities for fraud, money laundering, and other illicit activities.
To address these risks, the CBN requires all payment terminals to be registered with a Payment Terminal Service Aggregator (PTSA), either NIBSS or Unified Payment Services Limited. Operators must also provide accurate latitude and longitude coordinates for every merchant or agent location.
Source: Getty Images
Additionally, terminals that are not directly routed through a PTSA are prohibited from processing transactions, while all devices and applications must be certified by the National Central Switch (NCS).
The latest adjustment suggests the CBN is seeking a balance between strengthening oversight and ensuring that millions of Nigerians who depend on PoS services continue to enjoy seamless access to financial transactions.
POS operators to suspend services nationwide
Earlier, Legit.ng reported that the Association of Point of Sale Service Providers (POS) has stated that its activities may be shut down throughout the nation should the Central Bank of Nigeria (CBN) and the Federal Competition and Consumer Protection Commission (FCCPC) fail to immediately intervene in the alleged exclusivity practice by two companies.
The Association stated that it had submitted an official complaint on its website and to regulators concerning the "unlawful, constant decisions" from the two companies, which, the group says, were violating regulatory laws in their operation.
The Association disclosed in a statement signed by Yomi Idowu, Communications Consultant to the Association.
Source: Legit.ng
