CBN extends PoS geo-fencing metre, compliance deadline

The Central Bank of Nigeria (CBN) has extended the deadline for enforcement of its mandatory Point of Sale (PoS) terminal geo-fencing framework to 1 August, giving payment service providers an extended compliance window.

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The postponement was disclosed in a circular signed by the CBN Director of the Payments System Supervision Department, Rakiya Yusur, on Friday.

In August 2025, the CBN directed that all PoS terminals in the country be geo-tagged within 60 days as part of measures to curb fraud and strengthen oversight of digital payments under ISO 20022 standards.

The directive requires all players in Nigeria’s payments ecosystem, including Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Mobile Money Operators (MMOs), Super Agents, and switching companies, to adopt the ISO 20022 messaging standard and geo-tag all payment terminals.

Enforcement

The new extension shifted the enforcement date to 1 August, giving operators additional time to complete technical and operational requirements.

The apex bank also increased the permissible geo-fence radius for PoS terminals from 10 metres to 70 metres.

Additionally, the CBN postponed the enforcement date for compliance with the geo-fencing requirement as part of adjustments to the framework.

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“Further to the Circular with reference number PSS/DIR/PUB/CIR/001/001 dated August 25, 2025, on migration to ISO 20022 standards for payments messaging, mandatory geotagging of payment terminals, and various stakeholders’ engagement on the subject to address the operationalisation of the Circular, the Central Bank of Nigeria has considered and approved the following:

“Geo-fence radius is hereby increased from 10 metres to 70 metres. Enforcement of PoS Terminal Geo-fence is extended to August 1, 2026,” the central bank stated.

Geo-fencing requires PoS terminals to operate only within approved geographic locations linked to registered merchants and agents.

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The policy aims to strengthen transaction monitoring, curb abuse of payment channels, and improve the integrity of Nigeria’s payment system.

The central bank also ordered all affected institutions to submit evidence of compliance to the CBN’s Payments System Supervision Department no later than 31 July.

The CBN added that financial institutions are required to resolve all operational issues with the National Central Switch within the stipulated timeline to ease compliance.

“Evidence of compliance with the above should be addressed to the Director, Payments System Supervision Department via [email protected] not later than 31 July, 2026.

“Financial institutions are required to resolve all operational issues with the National Central Switch within the stipulated timeline to ease compliance,” the CBN stated.