CAC to Shut Down Unregistered PoS Operators by January 2026

Nigeria’s Corporate Affairs Commission (CAC) has issued a strict new directive ordering all point-of-sale (PoS) operators to register their businesses before January 1, 2026 — or face nationwide enforcement actions, including the seizure of unregistered PoS terminals.

The move marks one of the government’s strongest efforts yet to formalise Nigeria’s rapidly expanding PoS and agent-banking sector. It also piles fresh compliance pressure on fintech companies that deploy and manage large agent networks across the country.

CAC: Unregistered PoS Operators are a Risk to the Financial System

In a public notice dated December 6, 2025, the CAC expressed concern over “the rising number of PoS operators running without registration,” describing the trend as a violation of the Companies and Allied Matters Act (CAMA 2020) and the Central Bank of Nigeria’s (CBN) agent-banking regulations.

The Commission warned that the lack of registration creates loopholes that expose citizens and the financial system to fraud and other risks—often enabled by fintech companies that fail to enforce proper onboarding controls.

“Effective 1 January 2026, no PoS operator will be allowed to operate without CAC registration.” — CAC

This enforcement mirrors earlier action: in April 2024, the Nigerian government began requiring PoS agents to register with the CAC to improve transparency and curb fraud.

A Sector Under Scrutiny

Nigeria’s agent-banking ecosystem has grown to become one of the busiest and most critical financial access channels in the country. The sector now includes an estimated 1.9 million PoS agents, and PoS terminals processed an astonishing ₦10.51 trillion in Q1 2025 — a 301.67% increase from the same period in 2024, according to the Nigeria Inter-Bank Settlement System (NIBSS).

In August 2025, the CBN took its own enforcement step, ordering that all PoS terminals operate strictly within a 10-metre radius of their registered business address to limit fraudulent deployments.

Government Targets Operators — Not Just Fintechs

Unlike previous regulatory actions that focused heavily on fintech providers, the CAC’s new directive targets PoS operators directly. It also states that:

• Security agencies will enforce the new rules nationwide.
• Any PoS terminal operating without CAC registration will be seized or shut down.
• Fintech companies enabling non-compliant agents will be reported to the CBN and placed on a regulatory watchlist.

The PoS market has ballooned over the last five years, driven largely by fintech firms scaling agent networks across Nigeria’s urban and rural communities.

As of March 2025:

• 8.36 million PoS terminals were registered.
• 5.90 million were active or deployed.

But with growth has come concern—regulators frequently cite rising fraud cases, poor KYC practices, and weak oversight among agent networks.

What Happens Next

The CAC’s January 2026 deadline signals the start of a stricter era for PoS operations in Nigeria. Operators must now formalise their businesses or risk losing access to the market entirely.

Fintech companies will also be expected to strengthen agent verification, ensure compliant deployments, and work closely with regulators to enforce the new rules.

As the largest cash-distribution channel in the country, the PoS ecosystem is too important — and too vulnerable — to remain loosely regulated. The CAC’s crackdown now ensures that the industry enters 2026 with tighter controls, greater transparency, and stricter accountability.