CBN Expands POS Operating Radius to 70 Metres, Eases Geo-Fencing Rule

The Central Bank of Nigeria (CBN) has revised its regulatory framework for Point-of-Sale (POS) operations, increasing the permitted operating radius for terminals from 10 metres to 70 metres.

The adjustment forms part of a broader review of the geo-fencing policy introduced to strengthen oversight of Nigeria’s fast-growing agent banking and digital payments ecosystem.

The original rule required POS terminals to operate strictly within 10 metres of their registered business location, a measure designed to curb fraud, identity misuse, and unauthorised movement of devices. However, industry operators raised concerns that the restriction was too tight for real-world trading conditions.

Following consultations with stakeholders, the apex bank relaxed the rule, allowing a wider 70-metre operational radius while still maintaining location-based monitoring of terminals.

The CBN also extended the deadline for full compliance with the geo-tagging and geo-fencing framework, shifting enforcement to August 1, 2026. Operators are now required to submit evidence of compliance by July 31, 2026.

The policy is part of ongoing efforts to improve transparency in electronic payments, enhance transaction traceability, and reduce financial crimes within Nigeria’s rapidly expanding POS network, which has become a major channel for cash access nationwide.

Regulators say the updated framework aims to balance tighter oversight with operational flexibility for financial institutions, payment service providers, and millions of POS agents across the country.