The Corporate Affairs Commission’s (CAC) new directive mandating all Point of Sale (POS) operators to complete CAC registration before January 1, 2026 has sparked strong disagreements across Nigeria’s mobile money and agent-banking sector. The policy is already setting up a potential regulatory battle that could significantly reshape the industry.
Announcing the directive last week, the CAC warned that any POS terminal whose operator fails to register before the deadline will be confiscated, and the operator shut down. The Commission explained that the move aims to curb the rising population of unregistered POS agents—a situation it described as a threat to the financial system and a clear breach of the Companies and Allied Matters Act (CAMA) 2020 as well as the Central Bank of Nigeria’s (CBN) agent-banking rules.
According to the CAC, the proliferation of unregistered operators—allegedly encouraged by certain fintech firms—poses serious risks to citizens’ investments and national financial security. The Commission said security agencies have been instructed to enforce the directive nationwide, and fintech companies aiding non-compliant operators will be placed on a watchlist.
Industry Reacts: Split Opinions Among Stakeholders
The announcement has divided key stakeholders in the payment ecosystem. While the Association of Digital Payment and POS Operators of Nigeria (ADPPON) supports the move, though with conditions, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has vehemently opposed it, accusing the CAC of exceeding its legal mandate and undermining financial inclusion progress.
AMMBAN Rejects ‘Unnecessary, Multiple Registration’ Requirements
AMMBAN’s National President, Fasasi Sharafadeen, told Nairametrics that the directive is unnecessary, unconstitutional, and outside the CAC’s regulatory jurisdiction. He argued that POS agents already undergo the most robust onboarding procedures among informal-sector businesses.
“Every POS agent is registered with their financial institution, and the device is simultaneously profiled with the Nigerian Interbank Settlement System. No other business goes through this level of scrutiny,” he said.
Sharafadeen also dismissed CAC’s claim that mandatory registration would curb fraud, noting that many CAC-registered companies have still been implicated in fraudulent activities.
He added that existing security challenges in the POS ecosystem are already being addressed through established structures involving the CBN, DSS, Police, EFCC, and industry groups.
“There is a joint task force sanctioned by the Inspector General of Police that is currently sharing intelligence on fraudulent practices, and I lead that effort,” he said.
According to him, the CAC should focus on improving its registration platform and tackling Nigeria’s high rate of business closures rather than introducing what he calls duplicative requirements.
Sharafadeen further argued that the directive contradicts CBN agent-banking regulations. He emphasized that under CAMA 2020 and CBN guidelines, only non-individual agents—such as business names and corporate entities—are required to register with the CAC, while individuals trading under their personal names are exempt.
He warned that unless the CAC reverses its directive, AMMBAN may return to court to protect what it considers the fundamental rights of individual operators.
ADPPON Supports Policy but Calls for Coordinated Implementation
In contrast, ADPPON endorsed the federal government’s intention to sanitize the POS sector. In a statement, its National President, Paul Okafor, said the spike in fraud, kidnapping-related cash-outs, and illicit financial flows justifies stricter oversight.
He cited industry data presented to the National Assembly showing that financial-sector fraud surged from ₦17.67 billion in 2023 to ₦52.26 billion in 2024, with POS agents increasingly targeted.
However, Okafor maintained that the CAC cannot achieve meaningful results through unilateral directives. Past failures, he said, occurred because enforcement lacked coordination among key bodies such as the CBN, the Police, fintech companies, and operators.
He urged the government to set up a multi-agency task force to design a unified compliance timeline, establish a national POS operator verification framework, conduct sensitization programs, and create an implementation roadmap that guarantees security without jeopardizing livelihoods.
“Millions of Nigerians rely on POS services every day. Cleaning up the ecosystem must go hand-in-hand with safeguarding the small businesses that drive financial inclusion,” ADPPON said.
Background: Previous Deadlines Missed
In May last year, the CAC had given POS agents under major Fintechs—including OPAY, PALMPAY, and MONIEPOINT—a July 7, 2024 deadline to register their businesses. Registrar-General Hussaini Magaji said the decision aligned with legal requirements and directives from the CBN.
Following complaints from operators about difficulties using the CAC registration portal, the deadline was extended to September 5, 2024. The Commission warned that non-compliant operators would face prosecution and risk losing their businesses.
The new 2026 deadline, coming more than a year later, highlights the fact that a large number of POS operators across the country still remain unregistered.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
