The federal government has announced a nationwide ban on Point of Sale operators working without Corporate Affairs Commission (CAC) registration, following rising concerns about fraud and regulatory breaches. The announcement was issued on Saturday, 6th December, citing violations of the Companies and Allied Matters Act 2020 and Central Bank of Nigeria Agent Banking Regulations.
According to CAC, authorities observed an increasing number of PoS agents operating without traceable business identities, a trend the government described as dangerous. In the statement, the government warned that “This reckless practice often enabled by some fintech companies puts Nigeria’s financial system and citizens’ investments at risk. This must stop.”
The directive gave a clear deadline, stating that “EFFECTIVE 1 JANUARY 2026: No PoS operator will be allowed to operate without CAC registration. Security agencies will enforce nationwide compliance.” It further stressed that “Unregistered PoS terminals will be seized or shut down by Security Officials. Fintechs enabling illegal operations will be placed on watchlist and reported to the CBN. All operators are advised to regularize immediately.”
The government emphasised that compliance is mandatory for all operators.
This development follows earlier actions by financial crime agencies. In May 2025, the Police Special Fraud Unit and EFCC confirmed multiple arrests linked to PoS syndicates operating without proper registration, after banks flagged more than ₦9 billion in unauthorized withdrawals.
Authorities linked the unregistered terminals to identity theft and money laundering, prompting stronger calls for regulation and coordinated enforcement between CAC, CBN and security bodies.
Similarly, in August 2025, the Central Bank sanctioned several fintechs for onboarding PoS agents without Know Your Customer screening. Investigations reportedly connected over 400 cloned terminals to kidnapping, betting scams and pension fund theft.
Advocacy groups and lawmakers demanded urgent reform, warning that the credibility of Nigeria’s agent banking system was being eroded. The latest enforcement directive is seen as a response to these pressures as authorities move to clean up the PoS ecosystem.
