CBN Shakes PoS Industry, Sets Fresh Deadline For Operators And Updates Terminal Rules

In a circular issued on Friday and signed by the Director of the Payments System Supervision Department, Rakiya Yusur, the apex bank announced that full enforcement will now commence on August 1, 2026, instead of the earlier scheduled date.

The geo-fencing policy was first introduced in August 2025, when the CBN directed all PoS terminals nationwide to be geo-tagged within 60 days.

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

The directive applies to key stakeholders in the financial sector, including Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Super Agents, and switching companies. These institutions are required to adopt the approved messaging standard and ensure all payment terminals are properly geo-tagged.

As part of the updated framework, the CBN has also increased the permitted geo-fencing radius for PoS terminals from 10 metres to 70 metres, a move aimed at giving operators more operational flexibility while maintaining proper location controls.

Geo-fencing restricts PoS terminals to approved locations linked to registered merchants and agents. The system is designed to enhance transaction monitoring, prevent misuse of payment channels, and boost confidence in Nigeria’s digital payment ecosystem.

The apex bank explained that the adjustment followed consultations with stakeholders and was necessary to address practical implementation challenges. The extension, it said, will allow affected institutions sufficient time to complete required technical and operational adjustments.

All impacted institutions are also required to submit evidence of compliance to the Payments System Supervision Department on or before July 31, 2026.

In addition, the CBN directed financial institutions to resolve all outstanding issues with the National Central Switch within the stipulated timeframe, noting that timely resolution will support smooth compliance ahead of the August enforcement date.