Nigeria’s Central Bank Expands PoS Operating Radius to 70 Metres

Why It Matters

The broader radius eases operational constraints for agents while preserving fraud‑prevention controls, supporting the rapid growth of Nigeria’s cash‑less payments ecosystem.

Key Takeaways

• Radius increased from 10 m to 70 m for all PoS terminals
• Deadline extended to August 1, 2026, giving firms extra compliance time
• Active terminals now 5.9 million, handling $13 billion in Q1 2025
• Geo‑tagging enables regulator tracking, aiming to curb fraud
• Operators must certify devices with NCS and resolve issues by July 31

Pulse Analysis

Nigeria’s payment landscape has been reshaped by the Central Bank’s geo‑fencing policy, originally introduced in August 2025 to curb fraud by limiting PoS terminals to a 10‑metre radius around registered addresses. While the rule forced agents to embed precise GPS coordinates, it also created logistical hurdles for merchants operating in dense urban markets where storefronts often span multiple entrances and adjacent stalls. By expanding the radius to 70 metres, the CBN acknowledges these practical challenges while retaining the core objective of location‑based oversight.

The extended compliance window to August 1, 2026, gives payment service aggregators and device manufacturers additional time to update firmware, re‑certify terminals with the National Central Switch, and submit the required geo‑tag data. For operators like Moniepoint, OPay and Palmpay, the flexibility translates into lower operational costs and reduced downtime, as agents can now serve customers across a broader footprint without breaching regulations. At the same time, the continued mandate for real‑time tracking preserves a deterrent against illicit activity, a critical factor given the sector’s 301 percent transaction growth year‑over‑year.

The policy shift signals confidence in the maturity of Nigeria’s agent‑banking model, which now supports over 5.9 million active PoS terminals handling roughly $13 billion per quarter. By balancing regulatory vigilance with pragmatic allowances, the Central Bank aims to accelerate financial inclusion, especially in underserved regions where mobile agents are the primary cash‑access point. Future iterations may focus on advanced analytics and AI‑driven fraud detection, positioning Nigeria’s payments infrastructure to compete on a global stage while safeguarding consumer trust.