The Central Bank of Nigeria, CBN, has extended the PoS geo-fencing deadline to July 31, providing banks, fintech firms, payment service providers and other stakeholders in the electronic payments ecosystem additional time to comply with the regulatory framework governing Point of Sale terminals.
The extension was announced in a circular issued by the Director of the Payments System Supervision Department, Rakiya Yusur. The apex bank said the decision followed engagements with stakeholders and ongoing implementation challenges linked to the operationalisation of its earlier directive on payment system reforms.
According to the circular, the policy is part of broader measures introduced by the CBN under its migration framework to ISO 20022 payment messaging standards and the mandatory geo-tagging of payment terminals across Nigeria. The initiative is designed to strengthen oversight of electronic payment channels and improve transaction monitoring within the financial system.
The PoS geo-fencing deadline had initially been scheduled for earlier enforcement. However, following consultations with operators, financial institutions and payment service providers, the regulator approved additional time to allow stakeholders complete technical integration requirements and address operational concerns raised during implementation.
Geo-fencing requires every PoS terminal to operate within an approved geographical location linked to a registered merchant or agent. Under the framework, regulators and payment infrastructure providers can monitor the approved operating location of terminals and detect unauthorised deployment outside designated areas. The system is expected to improve accountability, strengthen transaction traceability and reduce opportunities for fraud within Nigeria’s rapidly expanding digital payment ecosystem.
The CBN also reviewed part of the framework following feedback from stakeholders. According to the revised guidelines, the approved geo-fence radius was increased from 10 metres to 70 metres. Industry operators had argued that the earlier limit could create operational difficulties for businesses located within large commercial complexes, shopping centres and market environments where terminals may need limited movement within the same business premises.
The growth of PoS services has transformed access to financial services across Nigeria, particularly in areas with limited banking infrastructure. Millions of Nigerians rely on PoS agents daily for cash withdrawals, transfers, deposits and bill payments. However, regulators have also expressed concerns about fraud risks, improper terminal deployment and monitoring challenges resulting from the rapid expansion of the sector.
The extension of the PoS geo-fencing deadline is expected to give operators more time to complete compliance requirements while allowing regulators to continue preparations for full enforcement. The CBN maintained that the policy remains an important component of efforts to improve transparency, strengthen payment security and enhance regulatory oversight within Nigeria’s digital financial services sector.
