CAC to Clamp Down on Unregistered PoS Operators by January 2026
In a public notice issued on December 6, 2025, the CAC
said it had identified a growing number of PoS agents operating without formal
business registration. The Commission described the situation as a breach of
the Companies and Allied Matters Act (CAMA 2020) and the Central Bank of
Nigeria’s agent banking rules. According to the CAC, the practice has been
quietly encouraged by some fintech companies and ultimately exposes Nigeria’s
financial system and citizens to unnecessary risk.
The enforcement comes at a time when regulators are
increasingly uneasy about the scale and vulnerability of Nigeria’s agent
banking network, which now includes more than 1.9 million PoS agents. The
growth has been explosive. According to data from the Nigeria Inter-Bank
Settlement System (NIBSS), PoS transactions reached ₦10.51 trillion in the
first quarter of 2025 alone, a massive 301.67% increase compared to the same
period the previous year.
With millions of Nigerians relying on PoS terminals as
their primary access point for cash, the CAC’s move reflects a coordinated
effort to strengthen compliance. Earlier in August, the CBN ordered PoS devices
to operate strictly within a 10-metre radius of their registered business
addresses, a policy designed to tighten control and reduce misuse.
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This time, the CAC is taking direct aim at operators
themselves, a sector previously supervised almost entirely by the CBN and the fintechs
distributing the devices. The Commission says security agencies will carry out
nationwide enforcement, with unregistered terminals either seized or shut down.
Fintech companies that continue to activate or support unregistered agents will
be reported to the CBN and placed on a regulatory watchlist.
The announcement adds fresh pressure on fintechs,
many of which expanded aggressively over the past five years and now manage
extensive agent networks across the country. By March 2025, Nigeria had 8.36
million registered PoS terminals, with 5.90 million actively deployed. These
networks have faced growing scrutiny over fraud risks, weak KYC processes, and
operational lapses.
The CAC’s deadline signals that the era of informal operations is closing, and both operators and fintechs will need to adapt quickly or face serious consequences.
