Nigeria’s central bank expands PoS operating radius to 70 metres

Nigeria's central bank has expanded the permitted operating radius for Point of Sale (PoS) terminals from 10 metres to 70 metres after concerns that the original restriction was too rigid for agents and merchants. This move is expected to ease the operational burden on PoS operators and merchants, who have been grappling with the previous 10-metre limit. The new rule is a significant relaxation of one of the CBN's strictest rules in Nigeria's fast-growing agent banking market.

What Happened

The CBN has revised its geo-fencing policy for PoS terminals, allowing them to operate within a 70-metre radius of their registered business locations. This marks a significant shift from the original framework, which limited terminals to operating within 10 metres of their registered addresses. The updated rules aim to strike a balance between curbing fraud and identity masking, while also accommodating the operational needs of PoS operators and merchants.

Inside the Rollout

The CBN's decision reflects growing concern over the scale and visibility of Nigeria's PoS ecosystem. Since their introduction in 2013, PoS terminals have become Nigeria's dominant cash access channel, with about 1,600 PoS agents per square kilometre. The rapid growth of the PoS ecosystem has also led to increased fraud and compliance concerns, with agents sometimes unknowingly serving as access points for illicit activity.

• PoS terminals have become Nigeria's dominant cash access channel
• There were 8.36 million registered PoS terminals as of March 2025
• Transactions reached a record ₦10.51 trillion in Q1 2025

Why This Matters

The relaxation of the geo-fencing policy is a significant development in Nigeria's fintech landscape. It reflects the CBN's willingness to adapt its regulations to accommodate the evolving needs of the industry. As Nigeria continues to grow its agent banking market, the CBN's rules will play a crucial role in shaping the sector's trajectory. The 70-metre operating radius will likely have a positive impact on PoS operators and merchants, who will now have more flexibility to operate their terminals.

The Takeaway

The CBN's revised geo-fencing policy is a significant step towards creating a more dynamic and flexible PoS ecosystem in Nigeria. While the new rules may pose some risks, they are designed to strike a balance between curbing fraud and identity masking, while also accommodating the operational needs of PoS operators and merchants. As the industry continues to evolve, the CBN's rules will play a critical role in shaping the trajectory of Nigeria's fintech sector.