The Central Bank of Nigeria (CBN) has widened the permissible geo-fencing radius for Point of Sale (PoS) terminals from 10 metres to 70 metres and extended the deadline for compliance with the requirement to August 1, 2026, following consultations with industry stakeholders.

The move is expected to ease implementation challenges faced by banks, fintechs, and other payment service providers, while preserving the regulator’s efforts to strengthen transaction monitoring and combat fraud across the electronic payments’ ecosystem.

In a circular signed by Director of Payments System Supervision Department, Dr. Rakiya O. Yusuf, and addressed to banks, mobile money operators, switching companies, payment service providers, and other licensed participants, the apex bank said the changes followed engagements with stakeholders on the operationalisation of its earlier directive on mandatory geo-tagging of payment terminals.

CBN stated, “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 operationalization of the Circular, the Central Bank of Nigeria has considered and approved the following.”

It added, “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 regulator directed operators to submit evidence of compliance to the Payments System Supervision Department no later than July 31, 2026.

According to the circular, “Evidence of compliance to the above should be addressed to the Director, Payments System Supervision Department via paymentdata@cbn.gov.ng not later than July 31, 2026.”

The apex bank also urged financial institutions to address all outstanding technical challenges within the compliance window.

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

The geo-fencing framework was introduced as part of CBN’s broader push to improve oversight of electronic payment channels by ensuring that PoS terminals operated within approved locations and that transaction data could be more effectively monitored.

The latest adjustment signals the regulator’s willingness to accommodate operational realities raised by industry participants while keeping in place safeguards aimed at strengthening the integrity and security of Nigeria’s fast-growing digital payments landscape. (THISDAY)

Update news