Central Bank of Nigeria Extends PoS Terminal Geofencing Deadline
The Central Bank of Nigeria (CBN) has announced an extension of the compliance deadline for the mandatory geofencing framework for Point of Sale (PoS) terminals, pushing it to August 1, 2026. This decision provides payment service providers with an additional window to align their operations with new regulatory requirements.
This postponement was revealed in a circular issued by Rakiya Yusuru, the Director-General of Payment System Supervision at the CBN. Originally mandated for August 2025, the CBN required that all PoS terminals throughout the country be geo-tagged within 60 days. This initiative aims to enhance fraud prevention and facilitate better monitoring of digital payment transactions, adhering to the ISO 20022 standards.
Extension of Compliance Period
The new deadline allows all stakeholders in Nigeria’s payments ecosystem—including depository banks (DMBs), microfinance banks (MFBs), mobile money operators (MMOs), super agents, and exchanges—additional time to meet the technical and operational prerequisites associated with the geofencing framework.
In conjunction with this extension, the CBN has increased the allowable geofence radius for PoS terminals from a restrictive 10 meters to a more accommodating 70 meters. This adjustment is designed to make compliance more feasible while still achieving the overarching goal of enhanced digital transaction security.
Regulatory Updates and Compliance Requirements
Alongside the updates to the geofencing standards, the CBN has advised institutions to submit proof of compliance to the Payment Systems Supervision Department by July 31. They must also resolve any operational issues linked to the national central exchange by the compliance deadline, ensuring a smooth transition to the new regulations.
The central bank emphasized the necessity for affected institutions to engage with various stakeholders to effectively operationalize this circular, previously referenced as PSS/DIR/PUB/CIR/001/001 dated August 25, 2025. Compliance data must be directed to the Director of the Payment Systems Supervision Department via the specified email no later than the compliance deadline.
Aiming for Enhanced Payment Integrity
This geofencing policy is intended to fortify transaction monitoring, limit misuse of payment channels, and ultimately bolster the integrity of Nigeria’s payment system. By requiring PoS terminals to be located only within designated geographic limits associated with registered merchants and agents, the CBN aims to create a more secure digital transaction environment.
These measures reflect the CBN’s ongoing commitment to improving the financial ecosystem in Nigeria and ensuring that both consumers and businesses can engage safely in digital commerce.
