CBN Announces New Deadline for PoS Geo-Fencing Compliance
- The CBN has further extended the compliance date for geo-fencing in the PoS business
- The acceptable PoS operational radius has also been extended from 10 metres to 70 metres
- The apex bank said the policy is to enhance transaction traceability and control fraud in the payments space
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria (CBN) has granted banks and payment service providers more time to implement mandatory geo-fencing of Points-of-Sale (PoS) terminals, extending the compliance deadline to August 1, 2026.
Source: Getty Images
In a circular signed by Rakiya Mohammed, the Director of the Payments System Supervision Department, the apex bank revealed that, following discussions with the industry over operational issues arising from the rollout of the policy, the permitted geo-fence radius for PoS machines has also been increased from 10m to 70m.
The apex bank explained that the 600% increase in the operational radius for PoS terminals will provide operators with greater flexibility, improve monitoring of terminal usage, and help reduce fraud risks while preserving the original objectives of the policy.
What to know about geo-fencing
The geo-fencing initiative is aimed at reinforcing the regulator’s oversight of the country's rapidly expanding digital payment system. It stipulates that each PoS terminal will only function within a designated, agreed-upon location. This allows regulators and banks to keep a better track of the machines, thereby reducing cases of financial crimes such as fraud and identity theft.
In August 2025, the CBN issued a directive to commercial banks, microfinance banks, mobile money operators and other licensed participants in Nigeria’s payments ecosystem, mandating full migration to the ISO 20022 payment messaging standard by October 31, 2025, BusinessDay reports.
The extension highlights the operational complexities facing banks and fintech firms as Nigeria accelerates efforts to modernise its payment infrastructure, improve transaction traceability and align its financial system with global messaging standards under ISO 20022.
Source: Getty Images
Financial institutions must comply
Ahead of the new deadline, the CBN has instructed all financial institutions to comply with this directive no later than July 31, 2026, by submitting evidence of their compliance to the Payments System Supervision Department.
The apex bank also made geo-tagging mandatory for all payment terminals to improve data accuracy, strengthen transaction traceability and enhance transparency across the financial system, DailyTrust reports.
The directive aligns with global SWIFT standards and supports Nigeria’s drive toward a more secure and standardised payments infrastructure.
Segun Fajoyegbe, National Publicity Secretary of the Association of Financial Inclusion Agents of Nigeria (AFIAN) raises concerns about the safety of PoS operators across the country.
He told Legit.ng that the security situation in Nigeria requires that all rural and roaming PoS agents relocate to safer areas in towns and cities.
"It is concerning that areas such as Papiri (across River Niger), Birnin Gwari (Kaduna Road), Kaima (Kwara), and Koko-Ilela (Sokoto Road), among other locations where agent networks were established, are no longer accessible due to banditry.
"No agent network manager can safely conduct evacuation exercises in these areas at this time."
POS operators announce plan to suspend services
Earlier, Legit.ng reported that the Association of Point of Sale Service Providers (POS) stated that its activities would 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.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
