The Central Bank of Nigeria (CBN) has eased one of its key regulations governing Point of Sale (PoS) operations by expanding the permitted operating radius for terminals from 10 metres to 70 metres.
In a circular issued on May 29, 2026, the apex bank also extended the compliance deadline for the geo-fencing framework to August 1, 2026, giving operators additional time to meet the new requirements.
Why the Policy Was Adjusted
The CBN made the changes following feedback from industry stakeholders who argued that the previous 10-metre restriction was too restrictive and difficult to implement across Nigeria’s expansive agent banking network. The revised rule seeks to strike a better balance between effective regulatory oversight and practical operational realities on the ground.
Understanding Geo-Fencing
The geo-fencing policy was introduced in August 2025 to enhance transparency and security in the PoS ecosystem. It requires payment service providers to link every terminal to specific GPS coordinates, enabling regulators to monitor their location and movement.
Under the updated guidelines, all PoS terminals must now be registered with a Payment Terminal Service Aggregator (PTSA) either NIBSS or Unified Payment Services Limited and must provide accurate latitude and longitude details for each merchant or agent location. Terminals not routed through an approved PTSA will be barred from processing transactions. All devices and applications must also be certified by the National Central Switch.
Rapid Growth and Fraud Concerns
Nigeria’s PoS sector has experienced explosive growth. As of March 2025, there were 8.36 million registered terminals, with 5.90 million actively deployed. In the first quarter of 2025 alone, PoS transactions reached ₦10.51 trillion, representing a massive 301.67% increase compared to the same period in 2024.
However, this rapid expansion has raised serious concerns about fraud, money laundering, and the movement of terminals to unauthorised locations. The geo-fencing policy is part of broader efforts to mitigate these risks while sustaining the growth of digital payments.
Extended Timeline for Compliance
Payment companies and operators now have until July 31, 2026, to submit proof of compliance, with full enforcement beginning on August 1, 2026. The extension is intended to allow financial institutions and service providers adequate time to resolve technical and logistical challenges associated with the new framework.
The CBN’s latest move reflects its willingness to engage with industry players and adjust policies in response to real-world operational feedback, while maintaining its commitment to a safer and more transparent payments ecosystem.
