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 comply with the requirements.Originally set for earlier enforcement, the new deadline has now been moved to August 1, 2026.

This decision was communicated through a circular issued by the apex bank and signed by the Director of the Payments System Supervision Department, Rakiya Yusur.The geo-fencing policy was first introduced in August 2025, when the CBN directed all PoS terminals across Nigeria to be geo-tagged within 60 days.

The initiative is part of broader efforts to improve oversight of electronic payments, reduce fraud, and align Nigeria’s payment ecosystem with the ISO 20022 messaging standard.

The directive affects key financial stakeholders including Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Super Agents, and switching companies.As part of the updated framework, the CBN also increased the allowable geo-fence radius for PoS terminals from 10 metres to 70 metres.This adjustment is aimed at giving operators more flexibility while still maintaining proper control over where terminals are used.

Geo-fencing is meant to restrict PoS usage to approved merchant or agent locations in order to track transactions better and reduce misuse of payment channels.The CBN explained that the extension came after consultations with stakeholders and consideration of implementation challenges.

Institutions are expected to ensure full compliance, adopt the required messaging standards, and resolve outstanding technical issues with the National Central Switch within the timeline.In addition, all affected institutions must submit proof of compliance to the CBN on or before July 31, 2026, ahead of the enforcement date.