Nigeria’s Corporate Affairs Commission (CAC) has ordered all point-of-sale (PoS) operators to register their businesses by January 1, 2026, or risk having their terminals seized.
The directive represents the government’s strongest move yet to formalise a sector that has grown quickly but unevenly, and it increases pressure on fintech companies to enforce stricter compliance across their agent networks.
In a notice issued December 6, 2025, the CAC warned about “the rising number of PoS operators running without registration,” calling it a violation of the Companies and Allied Matters Act (CAMA 2020) and the Central Bank of Nigeria’s agent banking rules. It said the practice, “often enabled by some fintech companies,” exposes Nigeria’s financial system and citizens’ funds to risk. “Effective 1 January 2026, no PoS operator will be allowed to operate without CAC registration,” it stated.
The move follows the government’s April 2024 mandate requiring PoS agents to register to curb fraud and improve transparency.
It also comes amid growing regulatory concern over the size and fragility of the agent banking ecosystem, which includes more than 1.9 million PoS agents. PoS transactions reached ₦10.51 trillion in Q1 2025 — a 301.67% rise from the previous year, according to the Nigeria Inter-Bank Settlement System.
As PoS terminals have become the main cash-access point for millions of Nigerians, regulators have increased oversight. In August, the CBN restricted PoS terminals to a 10-metre radius from their registered address.
The CAC now plans direct enforcement, saying security agencies will seize or shut down unregistered terminals. Fintechs supporting unregistered operators will be reported to the CBN and placed on a watchlist.
The directive heightens scrutiny on fintechs, many of which have rapidly expanded their agent networks. As of March 2025, Nigeria had 8.36 million registered PoS terminals, with 5.90 million active. Ongoing concerns include fraud risks, weak KYC practices, and inadequate supervision.
