The Central Bank of Nigeria (CBN) has expanded the permitted operating radius for Point of Sale (PoS) terminals from 10 metres to 70 metres following industry concerns that the original restriction proved too rigid for merchants and agents.
In a circular dated May 29, 2026, the CBN also extended the enforcement deadline for its geo-fencing policy to August 1, 2026, providing payment companies additional time to comply with the directive originally introduced in August 2025.
Regulatory Retreat on Agent Banking Controls
The revision represents a partial retreat from one of the CBN's strictest regulations governing Nigeria's rapidly expanding agent banking market. The central bank had sought to tightly control where PoS terminals operate through precise location tracking.
Under the current framework, operators including Moniepoint, OPay, and Palmpay must geo-tag all PoS terminals and tie them to specific GPS coordinates. This allows regulators to track the origin point of each transaction processed through the devices.
The original framework limited terminals to operating within 10 metres of their registered business locations. This restriction aimed to curb fraud, identity masking, and unauthorized movement of terminals outside registered addresses.
Evidence of compliance to the above should be addressed to the Director, Payments System Supervision Department via [email protected] not later than July 31, 2026
Massive Scale of Nigeria's PoS Network
The regulator's push reflects mounting concerns over the scale and visibility of Nigeria's PoS ecosystem. Since their introduction in 2013, PoS terminals have established an extensive footprint across the country.
Transaction volumes reached a record ₦10.51 trillion in Q1 2025, representing a 301.67% increase from the same period in 2024. However, this rapid growth has heightened fraud and compliance concerns, with agents sometimes unknowingly serving as access points for illicit activities.
Technical Implementation Requirements
The 2025 rule required all payment terminals to be registered with a Payment Terminal Service Aggregator (PTSA), either the Nigerian Interbank Settlement System (NIBSS) or Unified Payment Services Limited. Registration must include accurate latitude and longitude coordinates reflecting the merchant or agent's business location and operating status.
Terminals not directly routed to a PTSA are prohibited from processing transactions. Operators must also ensure their devices and applications receive certification from the National Central Switch (NCS).
In 2024, security concerns led NIBSS to develop the geofencing framework to prevent terminals from being used outside their registered deployment addresses. The new circular requires all financial institutions to resolve operational issues with the NCS within the stipulated timeline.
The expanded 70-metre radius provides merchants with greater operational flexibility while maintaining regulatory oversight of the payment ecosystem that has become central to Nigeria's financial infrastructure.