Abuja, Nigeria – December 6, 2025 – The Corporate Affairs Commission (CAC) has declared that from January 1, 2026, every Point-of-Sale (PoS) operator in Nigeria who is not properly registered as a business entity will be forced to stop operations, with security agencies authorised to seize unregistered terminals nationwide.
In a strongly worded public notice released on Saturday, the CAC described the continued operation of millions of unregistered PoS terminals as a “reckless practice” that directly violates the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria’s Agent Banking Regulations.
The Commission warned that some fintech companies are deliberately enabling unregistered agents to continue illegal operations, and vowed to place such platforms on a watchlist and report them to the CBN for regulatory action.
Key points from the official statement:
- No PoS operator will be allowed to function without CAC registration after December 31, 2025.
- Security agencies will enforce the directive across the country.
- Unregistered PoS terminals will be seized or deactivated.
- Fintech firms that continue to onboard or support unregistered agents will face sanctions.
- All operators must regularise their businesses immediately.
- “Compliance is mandatory.”
The CAC emphasised that the explosion of unregistered PoS agents, many of whom are onboarded by popular fintech apps with little or no verification, has created serious vulnerabilities in the financial system. These include increased fraud, money laundering, terrorism financing, tax evasion, and the use of cloned terminals to steal customers’ funds.
Nigeria currently has over 1.9 million active PoS terminals, far outnumbering traditional bank branches. While the rapid growth has driven financial inclusion and cashless transactions, it has also become a major channel for financial crime. Industry reports indicate that PoS-related fraud accounted for a significant portion of the billions of naira lost to cybercrime in recent years.
The new directive means every individual or group running a PoS business, no matter how small, must register with the CAC as either a business name (sole proprietorship) or a limited liability company. The process requires a valid means of identification, BVN, and tax identification number, and attracts registration fees ranging from ₦10,000 to ₦50,000 depending on the business type.
Market reactions have been immediate and mixed. In major commercial centres like Computer Village in Lagos, Alaba International Market, and Kano’s Sabon Gari, PoS operators expressed panic over the short deadline and the cost of compliance. Many street-level agents who earn daily commissions of ₦2,000–₦5,000 say the registration fees and annual returns will eat deeply into their thin margins.
Fintech platforms have also begun sending bulk SMS and in-app messages urging their agents to complete CAC registration before the deadline. Some are reportedly offering to subsidise part of the cost to retain their networks.
Economic analysts believe the policy, if fully implemented, could formalise hundreds of thousands of micro-businesses and boost government revenue through taxes and levies. However, they warn of possible short-term disruption to cashless payments, especially in rural and semi-urban areas where PoS agents are often the only access point to financial services.
The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has appealed to the CAC for a three-month grace period and the establishment of simplified registration centres in every local government to ease compliance.
As the January 1, 2026 approaches, millions of PoS operators across the country face a clear choice: register and continue trading legally, or risk having their machines confiscated and their livelihoods shut down. For many young Nigerians who rely on PoS businesses as their primary source of income, the coming weeks will be a frantic race against time.
