The Corporate Affairs Commission (CAC) has ordered all Point-of-Sale (PoS) operators in Nigeria to complete mandatory business registration, signaling the start of a wide-ranging enforcement campaign against unregistered operators.

In a statement posted on its Instagram page on Saturday, the Commission said it had observed a significant rise in PoS operators operating without proper registration. It stressed that running a PoS business without registration breaches the Companies and Allied Matters Act (CAMA) 2020 as well as the Central Bank of Nigeria’s (CBN) Agent Banking Regulations.

Fintechs warned over unregistered agents

The CAC also cautioned financial technology companies for onboarding unregistered PoS agents. It described the practice as reckless and a potential threat to the stability of the nation’s financial system. According to the Commission, unregistered operations leave millions of Nigerians, including small business owners and rural users, vulnerable to economic and investment risks.

“Fintechs enabling illegal operations will be placed on the watchlist and reported to the CBN. All operators are advised to regularise immediately. Compliance is mandatory,” the statement read.

Deadline and enforcement

The CAC announced that starting January 1, 2026, no PoS operator will be permitted to conduct business in Nigeria without completing full registration. This renewed warning follows an earlier directive issued in May 2024. The initial registration deadline was set for July 7, 2024, but was later extended to September 5, 2024, due to low compliance rates.

Rising concerns over fraud

Lawmakers have also expressed worry about growing fraud in the sector. The House of Representatives ad hoc committee on the Economic, Regulatory and Security Implications of PoS Operations highlighted issues such as unprofiled agents, cloned terminals, anonymous transactions, and weak Know-Your-Customer (KYC) practices.

According to the Nigeria Inter-Bank Settlement System Plc (NIBSS), PoS-related fraud accounted for more than 26 per cent of reported incidents in 2023. Experts say mandatory registration is a crucial step toward improving traceability, reducing fraud, and formalising Nigeria’s rapidly expanding agent banking network.

Moving forward

The CAC’s directive is part of a broader government effort to regulate the sector, protect consumers, and ensure that all financial agents operate within the law. Operators who fail to comply face sanctions, and fintechs that facilitate unregistered activities risk penalties from both the Commission and the CBN.