CBN Restricts PoS Terminals to 10-Metre Radius, Compliance Begins October 2025

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The Central Bank of Nigeria (CBN) has introduced strict new regulations requiring all Point of Sale (PoS) terminals to operate strictly within a 10-metre radius of their registered business locations.

In a circular issued Monday, signed by Rakiya Yusuf, Director of the Payments System Supervision Department, the apex bank emphasized:

“A radius of 10 meters outside the registered business/service location is the permitted geofence for all merchant activity.”

Under the directive, geo-location data will be captured at every transaction point and must be included as a mandatory reporting field. All existing terminals are required to be geo-tagged by licensed operators such as Moniepoint, Opay, and Palmpay within 60 days.

The CBN added that compliance validation exercises will begin on October 20, 2025, signaling a major shift in Nigeria’s rapidly growing agency banking sector.

While regulators argue the move will curb fraud and ensure better oversight, industry stakeholders warn that the restrictions could disrupt mobile PoS services, especially in rural and underserved communities where agents often move across markets and neighborhoods to reach customers.

The directive has sparked widespread debate, with many Nigerians worried about potential accessibility challenges and longer transaction queues if mobile agents are forced to remain tied to fixed business locations.