The Central Bank of Nigeria has pushed back the enforcement of mandatory geo-fencing for Point of Sale terminals to August 1, 2026, while expanding the permitted operating radius from 10 meters to 70 meters. The change comes through a circular dated May 29, 2026, signed by Dr. Rakiya O. Yusuf, Director of the Payments System Supervision Department.
Banks, mobile money operators, payment service providers, switching companies, and other licensed payments firms must complete compliance before the new deadline, the circular states. The revised radius is meant to give operators more flexibility in meeting location‑based monitoring requirements for PoS devices.
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Regulator bows to operational pressure
Geo‑fencing allows tracking of where a PoS terminal is used. The goal is to improve transaction monitoring and keep terminals out of unauthorized areas. The CBN had originally set a 10‑meter radius, which industry groups said was too tight for real‑world deployment. The new 70‑meter limit follows consultations with stakeholders.
The extension itself gives payment firms more time to handle technical integration. It also directed financial institutions to resolve outstanding issues involving the National Central Switch before enforcement starts. Operators are expected to submit evidence of compliance to the central bank’s Payments System Supervision Department by July 31, 2026.
Why the radius matters
A wider geo‑fence reduces the risk of false alerts when a terminal slightly drifts from its registered location. It also helps agents operating in areas with poor GPS accuracy or infrastructure limits. The CBN said the adjustment addresses those operational challenges without weakening oversight.
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In August 2025, the regulator issued a circular requiring all players in Nigeria’s payments ecosystem — deposit money banks, microfinance banks, mobile money operators, super agents, and switching companies — to adopt the ISO 20022 messaging standard and geo‑tag all payment terminals by October 31, 2025. That deadline was also criticized as unrealistic.
Agent association calls earlier rules too strict
Yusuf Adeyemo, National Vice President of the Association of Mobile Money and Bank Agents in Nigeria, previously told reporters that the compliance timeline was unrealistic given the number of devices in circulation. He also argued that the original 100‑meter operating radius set by the CBN was too restrictive for agents serving remote areas.
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The central bank did not comment on whether the new 70‑meter radius responds directly to that criticism. But the adjustment suggests it is willing to bend on technical details while maintaining the overall goal of location‑based monitoring. PoS terminals have become a major channel for cash withdrawals, transfers, and merchant payments in Nigeria, and the apex bank wants to curb fraudulent deployments.
The extension runs through August 1, 2026. Until then, operators have a window to test systems, fix integration problems, and submit compliance documents. After that date, terminals that aren’t properly geo‑tagged and aligned with the new radius could face restrictions or penalties.