The Central Bank of Nigeria has shifted the deadline for enforcing its Point of Sale terminal geo fencing framework to July 31, giving operators additional time to meet compliance requirements.
The update was contained in a circular issued by the Director of the Payments System Supervision Department, Rakiya Yusur, and applies to all participants in the country’s payment ecosystem.
According to the directive, the extension is intended to allow more time for Deposit Money Banks, Microfinance Banks, Mobile Money Operators, super agents, and switching companies to complete the technical adjustments needed for full implementation. These include the adoption of the ISO 20022 messaging standard as well as the mandatory geo tagging of all PoS terminals.
The new timeline shifts full enforcement to August 1, 2026, while operators are expected to submit evidence of compliance on or before July 31, 2026.
In the circular, the apex bank also announced an adjustment to the geo fencing structure, increasing the operational radius from 10 metres to 70 metres. This change, according to the bank, is aimed at improving flexibility while maintaining the integrity of location based monitoring.
Financial institutions were also directed to resolve all outstanding technical issues with the National Central Switch within the stipulated period to ensure smooth compliance across the system.
Geo fencing, which forms a key part of the new regulatory framework, requires PoS terminals to function strictly within approved geographic locations linked to registered merchants and agents. The measure is designed to strengthen oversight within the payments system and reduce the misuse of PoS devices for fraudulent activities and other forms of financial crime.
With the extension, the Central Bank says it expects all stakeholders to fully align with the updated requirements ahead of the new enforcement date, as part of broader efforts to enhance security and transparency in Nigeria’s digital payments space.
