POS operators reject CAC’s January 1 registration deadline
Point of Sale (POS) operators across Nigeria have pushed back against a new directive by the Corporate Affairs Commission (CAC) mandating that all POS agents must be registered by January 1, 2026.
The CAC announced over the weekend that the rise of unregistered POS terminals has contributed to financial crimes, prompting the agency to insist on compulsory registration under the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria (CBN) agent banking rules.
Neptune Prime gathered that many operators argue that their existing business registrations already cover their POS services and see no need for additional documentation.
Chuck Isaiah, who operates under the registered name Diplomatic Venture, said he is not worried about the directive. He explained that his business, which includes selling phone accessories and laptops, already uses POS as a payment channel, in addition to providing cash withdrawal and deposit services for customers.
Olusola Folowo, a frozen food vendor who also runs a POS point, shared similar views. She believes her business name sufficiently covers her POS operations and questioned why the CAC expects operators to register separately, especially considering the low profit margins and service charges imposed by fintech companies.
Some operators, such as Anjola of Anjoluwa Business Ventures, expressed concern that ignoring the directive could have serious consequences. She noted that the CAC might enforce the rules strictly by January and that operators need to take the warning seriously.
What the CAC says
In its official statement, the CAC said it will begin blacklisting fintech companies that enable unregistered POS operations starting January 1, 2026. The Commission noted that despite earlier deadlines, including the initial July 7, 2024 cutoff later extended to September 5, 2024, many operators still failed to comply.
The CAC stated that unregistered POS operations violate CAMA 2020 and the CBN’s 2013 agent banking guidelines. It warned that all unregistered POS terminals will be seized or shut down and that fintechs facilitating such activities will be placed on a watchlist and reported to the CBN.
Security agencies will also be involved to enforce compliance nationwide.
READ ALSO: POS in Nigeria: A lifeline for convenience, and a channel for crime, fraud, by Martha Gwary
Registrar General Hussaini Magaji said mandatory registration is intended to protect fintechs, customers, and the wider financial system, especially with fraud involving POS terminals on the rise. Data from NIBSS showed that POS related fraud accounted for 26.37 percent of all financial fraud incidents in 2023.
POS Transactions Hit Record N18 Trillion
Despite regulatory concerns, POS usage continues to grow. According to NIBSS, POS transactions reached N18 trillion in 2024, a 69 percent increase from N10.7 trillion in 2023. Transaction volumes also rose to 1.5 billion, an 8 percent year on year increase.
Fintech driven expansion has pushed the number of POS terminals deployed across the country to 5.5 million in 2024, more than double the 2.4 million recorded the previous year. Registered terminals also grew from 3.5 million to 7.8 million, although more than 2 million of these registered devices have not been deployed.
Analysts believe the continued rise in POS usage is linked to limited access to cash through traditional banking channels and the aggressive deployment strategies of fintech companies.
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