The Central Bank of Nigeria (CBN) has extended the permitted geo-fence radius for Point-of-Sale (PoS) terminals by 600 percent and shifted enforcement of the directive to August 1, 2026, giving banks and payment operators more time to comply with tighter monitoring rules.
In a circular signed by Rakiya Mohammed, director of the Payments System Supervision Department, the apex bank increased the allowable geo-fence radius for PoS terminals from 10 metres to 70 metres following engagements with industry stakeholders over operational challenges tied to implementation.
The move comes as the CBN intensifies oversight of Nigeria’s fast-growing digital payments ecosystem while seeking to avoid disruptions to banking and fintech operations.
The geo-fencing policy is designed to ensure that PoS terminals operate only within approved locations, enabling regulators and payment operators to track devices more accurately and curb fraud, identity theft and other illicit financial activities.
The revised timeline also delays enforcement of the geo-fencing requirement until August 1, 2026, from the earlier deadline set under the August 25, 2025 circular on migration to ISO 20022 payment messaging standards and mandatory geo-tagging of payment terminals.
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According to the CBN, all financial institutions are expected to resolve operational issues with the National I’m Central Switch before the new deadline to ensure seamless compliance.
The apex bank directed banks and payment service providers to submit evidence of compliance to the Payments System Supervision Department by July 31, 2026.
The extension highlights the operational complexities facing banks and fintech firms as Nigeria accelerates efforts to modernise payment infrastructure, improve transaction traceability and align its financial system with global messaging standards under ISO 20022.
In August 2025, the CBN issued a directive to commercial banks, microfinance banks, mobile money operators and other licensed participants in Nigeria’s payments ecosystem, mandating full migration to the ISO 20022 payment messaging standard by October 31, 2025.
The apex bank also made geo-tagging mandatory for all payment terminals to improve data accuracy, strengthen transaction traceability and enhance transparency across the financial system. The directive aligns with global SWIFT standards and supports Nigeria’s drive toward a more secure and standardised payments infrastructure.
Hope Moses-Ashike
Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks.
She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings.
Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.
