The Central Bank of Nigeria (CBN) has introduced revised rules for Point-of-Sale (PoS) terminals as part of efforts to tighten oversight in the country’s fast-growing digital payments sector.
In a circular issued on May 29, 2026, the apex bank updated key requirements for PoS geo-fencing, a technology that restricts terminals to operate only within approved business locations to prevent fraud and misuse.
Under the new directive, the allowable geo-fence radius for PoS terminals has been increased from the previous 10 metres to 70 metres. This adjustment gives operators more practical flexibility while still maintaining location-based controls. The CBN also extended the compliance deadline from the earlier timeline to August 1, 2026.
All payment service participants including Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Switching Companies, Payment Service Providers, and Super Agents are required to fully comply with the geo-tagging and geo-fencing requirements by the new deadline. They must submit evidence of compliance to the CBN on or before July 31, 2026.
The revisions follow industry feedback on the practical challenges of implementing the stricter 10-metre rule, especially in densely populated urban areas and markets where business locations may not have precise boundaries. The wider 70-metre radius is expected to reduce operational friction while still curbing issues such as terminal roaming, fake agents, and unauthorised cash-out points.
This move forms part of the CBN’s broader strategy to clean up the PoS ecosystem, improve transaction transparency, reduce fraud, and protect both customers and legitimate agents. Geo-fencing helps ensure that PoS devices are used only at registered merchant addresses, making it easier for regulators to monitor activities and enforce standards.
Nigeria’s PoS sector has grown rapidly over the past few years, becoming a major channel for cash withdrawals and payments, especially in areas with limited bank branch access. However, the expansion has also brought challenges including agent misconduct, multiple registrations, and security vulnerabilities.
The updated rules are expected to encourage better discipline among operators while giving them reasonable time to adjust their systems and processes. Industry stakeholders have welcomed the extension and radius adjustment as more realistic for day-to-day operations.
As the August 1 deadline approaches, banks and fintech companies are expected to intensify efforts to geo-tag and configure their PoS terminals accordingly. Non-compliance after the deadline could attract regulatory sanctions.
This latest directive reinforces the CBN’s commitment to building a safer, more reliable, and well-regulated digital payments environment in Nigeria.
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