The Central Bank of Nigeria (CBN) has relaxed its Point of Sale (PoS) operating rules, expanding the permitted radius from 10 metres to 70 metres. The compliance deadline for the new geo-fencing framework has been extended to August 1, 2026, allowing industry players more time to adapt.
CBN Eases Geo-Fencing Restrictions
The geo-fencing policy, initially introduced in August 2025, aimed to strengthen oversight of Nigeria's rapidly growing PoS ecosystem. Under the framework, payment service providers and operators such as Moniepoint, OPay, and PalmPay must geo-tag all PoS terminals and link them to specific GPS coordinates. This enables regulators to track transaction origins and monitor terminal movements.
Originally, PoS devices were restricted to operating within a 10-metre radius of their registered business locations to reduce fraud, prevent identity masking, and stop terminals from being moved to unregistered sites. However, following operational concerns from industry stakeholders, the CBN has widened the allowable radius to 70 metres, offering greater flexibility while maintaining oversight.
Compliance Deadline Extended
Alongside the revised radius, the CBN granted payment companies additional time to comply. According to the circular, evidence of compliance must be submitted to the Director of the Payments System Supervision Department through the designated CBN channel by July 31, 2026. The new enforcement date of August 1, 2026, provides financial institutions and operators more time to address technical and operational challenges.
Nigeria's Booming PoS Market
The regulatory review comes amid explosive growth in Nigeria's PoS sector. Since their introduction in 2013, PoS terminals have become crucial for accessing cash and conducting everyday transactions. Industry data shows approximately 1,600 PoS agents per square kilometre nationwide. As of March 2025, Nigeria had 8.36 million registered PoS terminals, with about 5.90 million actively deployed.
Transaction volumes have surged, with PoS transactions reaching a record ₦10.51 trillion in the first quarter of 2025, a 301.67% increase compared to the same period in 2024.
Fraud Prevention Remains a Priority
While the sector's rapid expansion has improved financial inclusion, it has also raised regulatory concerns. Authorities worry that some terminals are used outside registered locations, enabling fraud, money laundering, and other illicit activities. To address these risks, the CBN requires all payment terminals to be registered with a Payment Terminal Service Aggregator (PTSA), either NIBSS or Unified Payment Services Limited. Operators must provide accurate latitude and longitude coordinates for every merchant or agent location.
Additionally, terminals not directly routed through a PTSA are prohibited from processing transactions, and all devices and applications must be certified by the National Central Switch (NCS). The latest adjustment suggests the CBN is seeking a balance between strengthening oversight and ensuring seamless access to financial services for millions of Nigerians.
POS Operators Threaten Nationwide Suspension
Earlier, the Association of Point of Sale Service Providers (POS) stated that its activities may be shut down nationwide if the CBN and the Federal Competition and Consumer Protection Commission (FCCPC) fail to intervene in alleged exclusivity practices by two companies. The association submitted an official complaint regarding unlawful decisions that violate regulatory laws.
