The Central Bank of Nigeria has extended the enforcement of its Point-of-Sale terminal geo-fencing requirement to August 1, 2026, giving financial institutions and payment service providers more time to comply with the regulation aimed at improving oversight of electronic payment channels.

The directive was contained in a circular dated May 29, 2026, which was obtained from the CBN’s website on Friday.

The circular was signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf.

Addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Switching and Processing Companies, Payment Terminal Service Providers, Payment Solution Service Providers, Super Agents, and other licensed operators in the Nigerian payments ecosystem, the circular announced a revision to the policy’s implementation timeline, stating that the enforcement schedule has been updated accordingly.

The CBN said the decision followed consultations with stakeholders and issues identified during the implementation of an earlier circular dated August 25, 2025, which introduced the migration to ISO 20022 payment messaging standards and the mandatory geo-tagging of payment terminals.

The latest circular read, “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 geo-tagging of payment terminals, and various stakeholders’ engagement on the subject to address the operationalisation of the Circular, the Central Bank of Nigeria has considered and approved the following.”

The apex bank announced two key adjustments to the framework.

First, it expanded the allowable geo-fence radius for PoS terminals from 10 metres to 70 metres.

Secondly, it deferred the enforcement date for compliance with the geo-fencing requirement to a later timeline.

The circular stated, “Geo-fence radius is hereby increased from 10 metres to 70 metres,” and added that, “Enforcement of PoS Terminal Geo-fence is extended to August 1, 2026.”

Geo-fencing requires PoS terminals to function only within approved geographic locations linked to registered merchants and agents.

The measure is intended to enhance transaction monitoring, curb misuse of payment channels, and strengthen the overall integrity of the payments system.

The CBN also directed all affected institutions to submit proof of compliance ahead of the revised enforcement date.

The circular read, “Evidence of compliance to the above should be addressed to the Director, Payments System Supervision Department via [email protected] not later than July 31, 2026.”