In a decisive move that signals a new era of regulatory enforcement in Nigeria’s rapidly expanding financial services sector, the Corporate Affairs Commission (CAC) has announced that it will, beginning January 1, 2026, launch a sweeping nationwide crackdown on all Point-of-Sale (PoS) operators who are conducting business without proper registration. The development marks one of the most significant interventions by the CAC in recent years, coming amid skyrocketing growth in agent banking, digital payments, and cash-in-cash-out services across the country.
The announcement, issued in an official statement, expressed deep concern over what the commission described as the “alarming proliferation” of PoS businesses operating in clear violation of the Companies and Allied Matters Act (CAMA) 2020. Over the last eight years, Nigeria has witnessed an explosion in the use of PoS terminals, driven largely by fintech innovation, rising smartphone penetration, and the increasing integration of digital financial services in rural and underserved areas. Yet, this growth has come with troubling gaps in oversight, with many operators functioning informally, outside any legal regulatory framework.
According to the CAC, thousands of PoS agents are conducting business daily without any form of corporate registration — a situation that does not only break existing regulations but also exposes Nigeria’s financial system to risks ranging from fraud and money laundering to identity theft and financial manipulation. The commission emphasized that the security threat has grown even more worrisome because some fintech companies, eager to scale their networks, are onboarding agents without verifying their registration status.
For years, while the Central Bank of Nigeria (CBN) has repeatedly issued guidelines mandating agent registration under its Agent Banking Regulations, enforcement remained loose. This gave rise to a parallel market of informal PoS operators who, in many communities, have become the de facto banking system. Today, in some rural towns, PoS agents carry out more transactions per day than microfinance banks or commercial bank branches. But because many of these agents operate without any traceable records or recognized business documentation, tracking wrongdoing — or even identifying the operators behind fraudulent activities — has become a monumental challenge.
This is the gap that the CAC now says it is determined to close.
In its statement, the commission made it clear that compliance with CAMA is not optional. Any business offering PoS services, whether as an individual enterprise, partnership, or limited liability company, must be formally registered with the CAC. This is a requirement that many operators have ignored, either out of ignorance or deliberate avoidance.
The CAC explained that the new enforcement action follows months of internal assessments, consultations with financial regulators, and reviews of fraud-related complaints from consumers, banks, and law enforcement agencies. Sources close to the development revealed that the CAC has been alarmed by the number of fraud cases involving unregistered PoS agents, including unauthorized debits, illegal withdrawals, SIM swaps, identity theft, deposit fraud, and cash disappearance. In most of these cases, investigators encountered near-impossible hurdles in identifying or locating the perpetrators because they operated without any formal records.
The commission fears that this unregulated environment is now jeopardizing Nigeria’s efforts to strengthen trust in digital financial transactions, especially at a time when the government is pushing for financial inclusion, cashless payments, and modernization of the country’s economic infrastructure.
In addition to cracking down on unregistered agents, the CAC issued a stern warning to fintech companies whose platforms empower PoS agents. The commission accused some fintechs of knowingly or negligently allowing unregistered operators onto their networks, thus encouraging illegality and weakening regulatory compliance. According to the CAC, fintechs that continue to onboard unregistered PoS operators will be formally reported to the Central Bank of Nigeria for regulatory action.
This is a significant escalation. For the first time, the CAC is not only going after individual operators but also declaring that fintechs themselves may face sanctions if they are found to be complicit. Analysts believe this approach could reshape agent banking in Nigeria by forcing fintech companies to strengthen Know-Your-Customer (KYC) procedures, increase compliance oversight, and develop stricter onboarding systems.
From Lagos to Kano, Port Harcourt to Makurdi, Nigeria’s streets today are dotted with PoS kiosks, umbrella stands, branded portable tables, makeshift wooden booths, and micro shops displaying the familiar signs of agent banking providers. The sector exploded during the 2020 COVID-19 lockdowns, later accelerating during the 2023 naira redesign cash crisis, when PoS terminals became essential lifelines for millions of Nigerians struggling to access cash. With traditional banks unable to meet demand, PoS agents filled the gap — but in doing so, they also gained unchecked influence and operational power.
The CAC acknowledges the role PoS operators have played in bringing financial access to remote and underserved areas. However, it insists that such growth must not undermine national financial stability. The commission described the current situation as a “ticking time bomb” because many informal agents handle millions of naira monthly without any form of traceable identity or accountable business structure.
In many rural areas, some agents operate with multiple terminals using fake or unverifiable details. Criminal networks have also been known to disguise their operations behind PoS fronts, using them as cover for money laundering, cash distribution, or terrorist financing. These concerns, the CAC warned, cannot be ignored.
The January 1, 2026 enforcement date gives operators a narrow window to comply. The commission says it will intensify public awareness campaigns, especially in rural communities, to ensure that operators understand their obligations. It also plans to collaborate with state governments, trade associations, security agencies, and banks to verify compliance.
Although the CAC did not specify penalties in its initial announcement, provisions under CAMA empower the commission to impose fines, shut down illegal operations, and take legal action against businesses operating without registration. Industry experts predict that once enforcement begins, thousands of unregistered PoS outlets may be shut down or forced to suspend operations until they legalize their status.
Fintechs are equally expected to face scrutiny. With millions of agents across platforms like Opay, Moniepoint, Palmpay, Paga, MTN MoMo, and others, the CAC’s new directive could trigger a wave of compliance verification, re-onboarding processes, and renewed documentation requirements. This may cause temporary disruption but could ultimately strengthen trust and accountability in the sector.
Already, some fintechs have privately expressed concerns about the operational cost of verifying agent registrations nationwide. However, regulators argue that maintaining safe and legally compliant networks is part of their responsibility. The CBN, which oversees Nigeria’s payment landscape, is expected to support the CAC’s action, especially as it aligns with global standards for anti-money laundering (AML) and combating the financing of terrorism (CFT).
Consumer advocacy groups have welcomed the crackdown, praising it as long overdue. Many Nigerians who have fallen victim to PoS fraud often find themselves helpless, unable to trace or prosecute offenders. With registration now a requirement, victims may finally have a path to seeking legal remedy, as every operator will have a documented identity and verifiable business address.
However, some operators fear that the enforcement may lead to temporary job losses. The PoS sector employs millions of Nigerians, especially youths. For many, it is their primary source of income. But the CAC insists that registration is a simple process that can be completed online at minimal cost. The commission argued that anyone serious about running a financial service business must be willing to operate legally.
The next few months are expected to see heightened activity as operators rush to comply, fintechs tighten their onboarding processes, and regulators prepare for nationwide monitoring. If properly implemented, the crackdown could mark a turning point in Nigeria’s financial services landscape — ushering in a more structured, accountable, and secure PoS ecosystem.
Yet, even as Nigerians welcome the move, many wonder whether enforcement will be sustained or fade away after initial media attention. The CAC, however, appears determined. By linking its initiative to national financial integrity and consumer protection, the commission has signalled that this crackdown is not a symbolic gesture but a long-term regulatory overhaul.
As Nigeria continues to modernize its payment infrastructure and deepen financial inclusion, resolving the challenges created by informal PoS operations will be crucial. The CAC believes that with proper regulation, the sector can thrive without exposing the country to systemic risks.
Whether January 2026 becomes a true turning point remains to be seen. But one thing is certain: the era of unregistered PoS operations in Nigeria is coming to an end — and the financial ecosystem will never be the same again.