CAC threatens to blacklist Fintechs backing unregistered PoS operators
The Corporate Affairs Commission (CAC) has warned that it will blacklist fintech companies aiding the operations of unregistered Point of Sale (PoS) agents in Nigeria, as part of a renewed regulatory crackdown on illegal PoS activities.
The warning was issued in a statement released by the Commission over the weekend.
The latest directive comes nearly a year after the CAC began moves to enforce compulsory registration of PoS operators, following the expiration of the extended September 5, 2024 deadline.
Despite earlier warnings, the Commission said it has observed a surge in unregistered PoS agents across the country, in violation of CAMA 2020 and the Central Bank of Nigeria’s (CBN) agent banking regulations.
“This reckless practice, often enabled by some fintech companies, puts Nigeria’s financial system and citizens’ investments at risk,” the statement noted.
The CAC announced that effective January 1, 2026, no PoS operator will be permitted to operate without proper CAC registration. It added that security agencies will be mobilised nationwide to enforce full compliance and shut down defaulting operators.
In May 2024, the Commission had directed PoS agents under major fintechs including OPay, Palmpay, and Moniepoint to register by July 7, 2024, a deadline later extended by 60 days.
The Registrar-General of the CAC, Hussaini Magaji, said the registration requirement followed consultations with industry stakeholders and aligned with CBN directives.
However, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has consistently opposed the directive, arguing that it contradicts provisions of the Companies and Allied Matters Act (CAMA) 2004. AMMBAN insists the Commission has no jurisdiction over individuals who are not operating as companies.
According to AMMBAN’s National General Secretary, Oluwasegun Elegbede, the matter is already before the court, which is expected to rule on whether PoS sub-agents whom the group likens to bank branches are legally required to register.
The CAC’s intensified action comes as fraud cases involving PoS terminals continue to rise. A report by the Nigeria Inter-Bank Settlement System (NIBSS) showed that PoS terminals accounted for 26.37% of fraud incidents in 2023, prompting regulators to tighten oversight.
Magaji reiterated that the CAC’s mandate is backed by Section 863(1) of CAMA 2020 and the 2013 CBN guidelines on agent banking, stressing that the registration requirement aims to protect businesses, secure customer funds, and strengthen the financial system.
With legal disputes ongoing and enforcement looming, the regulatory environment for PoS operators is set for major changes as the January 2026 deadline draws near.