CBN shifts PoS geo-fencing deadline to August 1

The Central Bank of Nigeria has extended the enforcement deadline for the geo-fencing of Point-of-Sale (PoS) terminals to August 1, 2026, giving financial institutions and payment service providers more time to comply with the directive.

The decision was announced in a circular dated May 29, 2026, signed by the Director of the Payments System Supervision Department, Dr Rakiya Yusuf.

The circular, addressed to banks, mobile money operators, switching companies, and other players in the payments ecosystem, stated that the extension followed consultations with stakeholders and operational challenges linked to an earlier directive issued in August 2025.

As part of the review, the apex bank also increased the allowable geo-fence radius for PoS terminals from 10 metres to 70 metres.

Geo-fencing requires terminals to operate within approved geographic locations tied to merchants or agents, a measure aimed at improving transaction monitoring, reducing fraud, and strengthening oversight of digital payment systems.

The CBN directed all affected institutions to submit proof of compliance on or before July 31, 2026, ahead of the new enforcement date.

It also urged operators to resolve outstanding technical issues with the National Central Switch to ensure smooth implementation.

The extension is expected to allow operators complete system upgrades, properly align terminal locations, and address operational bottlenecks before enforcement begins in August.