CBN Gives Fresh Deadline For PoS Operators, Makes Major Change To Terminal Rules

The Central Bank of Nigeria (CBN) has shifted the enforcement date for its mandatory Point of Sale (PoS) terminal geo-fencing policy, giving payment service providers more time to meet the requirements.

Naija News reports that the apex bank announced the extension in a circular issued on Friday and signed by the Director of the Payments System Supervision Department, Rakiya Yusur. Under the new arrangement, enforcement of the policy will begin on August 1, 2026, instead of the earlier date.

The geo-fencing initiative was first introduced in August 2025 when the CBN directed all PoS terminals across the country to be geo-tagged within 60 days.

The measure forms part of broader efforts to improve monitoring of electronic payments, reduce fraud, and align Nigeria’s payment system with the ISO 20022 messaging standard.

The directive affects key players in the financial sector, including Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Super Agents, and switching companies. These institutions are expected to adopt the required messaging standard and ensure that payment terminals are properly geo-tagged.

As part of the latest changes, the CBN increased the allowable geo-fence radius for PoS terminals from 10 metres to 70 metres. The adjustment is expected to provide operators with greater flexibility while still maintaining control over where terminals are used.

Geo-fencing is a system that restricts PoS terminals to approved locations linked to registered merchants and agents. The policy is designed to help authorities track transactions more effectively, prevent misuse of payment channels, and strengthen confidence in the country’s digital payment system.

The central bank said the decision followed engagements with stakeholders and considerations surrounding the practical implementation of the framework. The extension is intended to allow affected institutions enough time to complete the technical and operational processes required for full compliance.

In addition to meeting the new deadline, all affected institutions have been directed to submit proof of compliance to the CBN’s Payments System Supervision Department on or before July 31, 2026.

The regulator also instructed financial institutions to settle any outstanding operational challenges with the National Central Switch within the approved timeline. According to the CBN, resolving such issues promptly will make it easier for institutions to comply with the geo-fencing requirements before enforcement begins in August.