Update, 23 October 2026: The 1 August 2026 enforcement date in this story has passed. The CBN has not said how many terminals have been blocked or fined since.
The Central Bank of Nigeria raised the permitted operating radius for PoS terminals from 10 metres to 70 metres in a circular announced on 29 May 2026, and moved enforcement of its geo-fencing rule to 1 August 2026. BusinessDay reported that the circular followed talks with industry stakeholders about operational problems in applying the rule. The circular says: "Geo-fence radius is hereby increased from 10 metres to 70 metres," according to AllAfrica's report.
The rule was relaxed, not dropped. Terminals must still be tied to a registered location, and institutions had to send proof of compliance to the CBN by 31 July.
Why the 10 metre rule struggled
The original requirement came from a 25 August 2025 circular that required existing terminals to be geo-tagged within 60 days, new devices to be tagged before activation, and terminals failing checks from 20 October 2025 to be deactivated. Fintech executives told Launchbase Africa that GPS accuracy in dense cities often exceeds 10 metres even for a stationary device, and that rural agents with vague addresses risked their terminals locking up.
The CBN's reasoning is fraud control. The rule targets terminals moved to unregistered places and agents who disappear with cash and devices. Volumes explain the urgency. NIBSS published a 79.03% rise to ₦18.78 trillion in Q1 2026, from ₦10.49 trillion in Q1 2025.
What the circular requires
- Radius: 70 metres from the registered location, up from 10.
- Compliance evidence: send it to the Payments System Supervision Department at paymentdata@cbn.gov.ng by 31 July 2026.
- Enforcement: from 1 August 2026.
- National Central Switch: institutions must resolve outstanding operational issues with the NCS inside the same window.
What has happened since
The deadlines are behind us, and the CBN has not reported any blocked terminals or fines. On penalties, Nairametrics reported that a 6 October 2025 circular set a minimum ₦5 million penalty for non-compliance plus ₦300,000 for each further day. Agents found guilty of fraud or misconduct are personally liable, while defaulting institutions face sanctions ranging from suspension to licence loss, as set out below.
The full rulebook PoS agents now work under
Geo-fencing is one part of a wider agent banking framework the CBN issued in October 2025, reported by ICIR and Nairametrics:
| Rule | What it says |
|---|---|
| Agent daily cap | ₦1.2 million in transactions per agent per day |
| Customer daily cap | ₦100,000 per individual customer per day |
| Location | Devices must be geo-fenced to the registered location; moving, transferring or closing premises needs written approval from the principal or super agent |
| Relocation notice | Must be displayed at the premises for at least 30 days |
| Settlement | All agent transactions must run through a dedicated account or wallet held by the principal institution |
| Exclusivity and location provisions | Effective 1 April 2026 |
| Penalty for non-compliance | Minimum ₦5 million, plus ₦300,000 for each further day |
| Sanctions for institutions | Suspension from onboarding agents, blacklisting, removal of officials or loss of licence |
For an agent, the practical effect is that one terminal, one registered spot and one settlement account now define the business. Agents who serve customers in more than one location need a separate approval for each.
What this means for Nigerians
If you run a PoS stand, check with your provider that your terminal is tagged to the address where you actually trade. In practice, this likely means a 70 metre radius covers a typical stall or shop front but not a move across a market or to a different street. Customers should not notice anything unless a terminal is blocked.
Launchbase Africa warned that millions of terminals may need firmware updates or replacement and that agent networks could thin out in areas with poor connectivity, but that is a forecast, not an observed result.
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What to watch now that enforcement has started
- Enforcement reports. The CBN has not published figures on blocked terminals or fines since 1 August. Any first enforcement report will show how strictly the rule is applied.
- The radius itself. The CBN changed it once after industry feedback. Watch the CBN circulars page for further revisions; the latest is titled "Revised Implementation Timeline and Enforcement on POS GEO-Fencing", dated 11 June 2026.
- Agent exclusivity. The location and exclusivity provisions of the agent banking framework took effect on 1 April 2026, so expect providers to tighten who an agent can work with.
