CAC Orders Mandatory Registration for All PoS Operators by 2026
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The Corporate Affairs Commission’s new compliance directive for Point of Sale (PoS) operators has triggered sharp divisions across Nigeria’s mobile money ecosystem, setting up a regulatory confrontation that could reshape the country’s agent-banking environment.
Last week, the Commission announced that all PoS operators must register with the CAC before January 1, 2026. It warned that any unregistered terminals would be seized and operators shut down. The CAC said the measure is necessary to address the growing number of unregistered PoS agents, describing the trend as dangerous to the financial system and a violation of both the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria’s agent-banking guidelines.
The Commission further accused some fintech companies of enabling unregistered operations, calling the practice reckless and harmful to the stability of the financial system. It added that security agencies would enforce the directive and that fintechs found supporting non-compliant operators would be watchlisted.
The announcement has drawn mixed reactions from key players. While the Association of Digital Payment and PoS Operators of Nigeria (ADPPON) expressed conditional support, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) rejected the directive, saying the CAC is overstepping its authority and threatening financial inclusion.
AMMBAN’s National President, Fasasi Sharafadeen, described the directive as unnecessary, out of scope, and potentially unconstitutional. He argued that PoS operators already undergo one of the strictest onboarding processes among small businesses. According to him, every PoS agent is fully profiled by their financial institution and registered simultaneously with the Nigerian Interbank Settlement System. He questioned the CAC’s claim that registration would curb fraud, stating that many CAC-registered companies have engaged in fraud without mitigation.
Sharafadeen said security challenges within the PoS ecosystem are already being addressed by existing frameworks driven by the CBN, security agencies such as the DSS, Police, and EFCC, and industry associations. He noted that a joint task force sanctioned by the Inspector General of Police currently shares intelligence on PoS-related fraud. He added that the CAC should focus on improving its portal and addressing Nigeria’s high rate of business shutdowns. He also argued that the new directive contradicts CBN guidelines, which require only non-individual agents, such as business names and enterprises, to register with the CAC, while individuals operating under their personal names are exempt. He warned that AMMBAN may take legal action if the CAC does not withdraw its threat.
ADPPON, on the other hand, supports the government’s attempt to clean up the PoS industry. Its National President, Paul Okafor, said rising cases of fraud, kidnapping, and illicit transactions justify stronger regulation. He cited data presented to the National Assembly showing that financial-sector fraud rose from N17.67 billion in 2023 to N52.26 billion in 2024, with PoS agents increasingly being targeted. He noted that the association has long warned about these risks but emphasized that the CAC cannot succeed through unilateral enforcement. He said previous attempts failed due to lack of collaboration among the CBN, Police, fintechs, and industry groups. ADPPON called for a multi-agency task force to design a harmonized compliance timeline, an operator-verification framework, and sensitization programmes that balance security with livelihood protection.
In its statement, ADPPON noted that millions of Nigerians rely on PoS services daily and that sanitizing the ecosystem must be paired with strategies that safeguard the small businesses enabling financial inclusion.
In May 2024, the CAC announced that PoS agents for major fintechs, including OPay, Palmpay, and Moniepoint, had been given until July 7, 2024, to register. CAC Registrar-General Hussaini Magaji said the requirement aligned with legal provisions and CBN directives. Following widespread complaints about difficulties using the CAC portal, the Commission extended the deadline to September 5, 2024, warning that defaulters risked prosecution and business closure.
The new deadline, issued more than a year later, indicates that a large number of PoS operators nationwide remain unregistered.
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