Nigeria's central bank has dramatically widened the operating zone for Point-of-Sale machines. The CBN increased the allowed geo-fence radius for PoS terminals from 10 metres to 70 metres.
That's a 600 percent expansion. It gives banks and payment operators breathing room to meet stricter monitoring requirements.
Rakiya Mohammed, director of the Payments System Supervision Department, signed the circular outlining the change. She noted that industry players had raised serious concerns about implementation challenges.
Enforcement of the new rules now kicks in on August 1, 2026. The earlier deadline was set for August 25, 2025.
Geo-fencing technology restricts PoS terminals to approved locations only. It helps regulators track devices more closely and prevents fraud, identity theft, and other financial crimes.
All financial institutions must resolve operational issues with the National I'm Central Switch before the August deadline. The CBN wants zero disruptions when the rules take effect.
Banks and payment service providers face a July 31, 2026 compliance deadline. They must submit proof to the Payments System Supervision Department by that date.
The extension reveals the real challenges facing Nigeria's banking sector. Fintech companies and traditional lenders struggle to upgrade infrastructure while keeping operations smooth.
Last August, the CBN ordered all payment ecosystem participants to migrate fully to ISO 20022 messaging standards. The October 31, 2025 target applied to commercial banks, microfinance banks, and mobile money operators.
Geo-tagging became mandatory for payment terminals under that directive. It's meant to boost data accuracy and transaction transparency across the system.
These moves align Nigeria with global SWIFT standards for payments. Officials say the upgrades strengthen the nation's financial security architecture.
The CBN is pushing hard to modernize payment infrastructure nationwide. Better tracking and traceability will support the country's broader financial sector goals.
Industry watchers see the extended timeline as a practical compromise. It acknowledges real operational constraints without abandoning the regulator's core objectives.
