Month: December 2025

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.

Group Chief Executive Officer, Babajide Lawani, outlines strategy focused on risk management, ethics, and client partnership

CFG Africa has unveiled the ₦1 billion CFG Ethical Fund, positioning the Sharia-compliant investment vehicle as a low-risk anchor for institutional and retail portfolios preparing for the uncertainties of the 2026 financial year. The launch took place at the Client Engagement Forum 2025, a high-level investor gathering held on Friday, November 21, 2025, at The Wheatbaker Hotel in Ikoyi, Lagos.

The event, themed “2026 in Focus — Opportunities for Growth, Navigating Uncharted Terrains,” brought together market leaders and institutional investors to examine risk-adjusted investment opportunities in a year expected to test global markets with elevated geopolitical risks, inflation pressures, and a slower liquidity cycle. Against that backdrop, the Ethical Fund was presented as a strategic diversification product designed to deliver steady income while adhering to ethical and Sharia financial principles.

Anchoring Portfolio Stability Through Ethical Finance

The CFG Ethical Fund is a Securities and Exchange Commission (SEC)-regulated, open-ended unit trust scheme with a unit price of ₦1,000. The fund targets stable, low-risk returns through allocation to Sukuk, fixed-income instruments, and ethically screened equities, allowing investors to diversify across defensive assets that comply with Islamic finance rules.

The fund is structured with CFG Asset Management Limited as the Fund Manager, AVA Trustees Limited as Trustee, Rand Merchant Bank Nigeria as Custodian, CardinalStone Registrars Limited as Registrar, and One17 Capital serving as the Sharia Adviser. This multi-expert governance framework is intended to strengthen transparency, ensure full compliance, and enhance investor confidence.

CFG Africa noted that the Ethical Fund is guided by strict ethical screening rules, excluding interest-based instruments and prohibited sectors while prioritizing companies and issuers that demonstrate responsible governance, transparency, and social impact. By combining Sukuk with a mix of fixed income and compliant equities, the fund seeks to reduce portfolio risk while providing a stable income profile aligned with ethical investing standards.

Integrated Strategy Anchored on Research and Risk Management

Speaking at the launch, Babajide Lawani, Group Managing Director/CEO of CFG Africa, explained that the firm’s investment philosophy is rooted in client partnership, risk management, and deep market intelligence. He described CFG Africa as an organization “built for collaboration,” enabling clients to access integrated advisory support across asset management, capital markets, and enterprise growth.

“We are quite market-powered,” Lawani said. “We deliver competitive returns to all of our clients anchored around risk management, driven by thorough research. Our structure allows us to go beyond transactional services and provide sustained strategic guidance.”

He stressed that CFG Africa intends to play a catalytic role in supporting large-scale enterprise development in key sectors such as real estate, healthcare, and defence, while also advising clients on capital raising, expansion strategy, and asset allocation. According to Lawani, the Ethical Fund reflects growing investor appetite for low-volatility structures, especially in periods of uncertainty.

Institutional Collaboration and Governance Strength

The presence of senior executives from partner institutions reinforced the collaborative model behind the CFG Ethical Fund. Industry leaders from Rand Merchant Bank, One17 Capital, CardinalStone Registrars, and AVA Trustees attended the unveiling, alongside analysts and portfolio managers who discussed trends in ethical finance and the rising appeal of Sharia-compliant investments in Africa.

The fund’s governance structure aligns with CFG Africa’s conservative investment approach, which prioritizes capital preservation before profit. The group said its portfolio philosophy favors government securities, high-grade commercial paper, and placements with rated financial institutions, especially when markets present elevated volatility.

About CFG Africa

CFG Africa is a diversified investment banking group advancing innovative financial solutions across brokerage, asset management, and fiduciary services. The group operates through three integrated subsidiaries — CFG Asset Management, CFG Maynard, and CFG Africa Trustees — enabling seamless solutions across the investment value chain. Its client base includes corporates, institutions, high-net-worth individuals, and developers seeking structured financial advisory and secured investment vehicles.

The launch of the ₦1 billion CFG Ethical Fund underscores the company’s conviction that ethical finance will play a growing role in portfolio allocation strategies as investors seek predictable returns, transparency, and risk-managed exposure going into 2026.

The United Nations has sharply reduced its humanitarian funding appeal for 2026 to $23 billion, slashing its request by almost half compared to the previous year, as global donor support continues to decline despite unprecedented humanitarian needs. The new figure represents the immediate priority under the $33 billion Global Humanitarian Overview (GHO) 2026, which outlines the UN’s plan to deliver lifesaving assistance to millions affected by conflict, climate disasters, epidemics, mass displacement, and food insecurity.

The appeal was announced on Monday during the formal launch of the GHO, the UN’s flagship annual humanitarian assessment and funding document. This year’s appeal reflects a strategic shift driven by a worsening funding environment and intensifying global crises that have left aid organizations under severe operational strain.

Funding Collapse Forces UN to Focus on Those ‘Closest to Death’

In unveiling the 2026 appeal, the UN said it will now focus resources on 87 million people facing the most immediate threats to life. However, the GHO identifies 135 million people across 50 countries who are in urgent need of assistance—a staggering indication of the scale of humanitarian emergencies globally.

“This appeal sets out where we need to focus our collective energy first: life by life,” said Tom Fletcher, the UN’s Under-Secretary-General for Humanitarian Affairs. He warned that steep reductions in donor funding mean the UN must make “brutal decisions” about who receives aid and who will be left without support.

Fletcher described the frontline reality facing humanitarian teams: overstretched personnel, underfunded operations, and mounting insecurity in high-risk conflict zones. “We are forced into tough, tough choices. We are overstretched, underfunded, and under attack. We drive the ambulance toward the fire, on your behalf. But now we are being asked to put the fire out—with almost no water in the tank—while being shot at,” he said.

The UN’s retreat is seen as both financial and moral, occurring at a time when global humanitarian needs have reached record levels. From Gaza to Sudan, Syria, Haiti, Myanmar and the Sahel, conflict and state collapse have triggered mass displacement, chronic hunger, and the collapse of health systems. Climate-driven disasters like floods, cyclones, droughts and crop failures are further intensifying vulnerability.

Historic Shortfall in 2025 Sparks Urgent Reassessment

The dramatic reduction follows a disastrous funding year. The UN originally sought $47 billion for 2025 but later cut back its target after worsening shortfalls from key Western donors, including the United States and Germany. Ultimately, the UN received only $12 billion in 2025—the lowest level of humanitarian funding in a decade.

The consequences were severe: programmes designed to protect women and girls were cut, hundreds of humanitarian organizations shut down, and over 380 aid workers were killed, marking the deadliest year on record for humanitarian staff. Fletcher highlighted that the scale of violence against aid workers has fundamentally changed the operating environment for aid agencies.

Where the Funding Will Go: Gaza, Sudan, and Syria Lead Needs

The 2026 appeal prioritizes three of the world’s most devastating humanitarian emergencies:

• Occupied Palestinian Territories (Gaza): $4.1 billion
  Nearly all 2.3 million residents of Gaza depend on humanitarian assistance following two years of continuous conflict, mass civilian casualties, and infrastructure collapse.

• Sudan: $2.9 billion inside the country; $2 billion for refugees abroad
  Sudan now faces one of the fastest-growing humanitarian crises globally. More than 20 million people are displaced internally, while 7 million have fled across borders.

• Syria: $2.8 billion
  A regional appeal covering 8.6 million people struggling with food shortages, economic collapse, and unresolved conflict after nearly 14 years of war.

These three emergencies alone account for almost half of the UN’s total appeal, highlighting the overwhelming pressure on humanitarian systems in the Middle East and Northeast Africa.

Millions Will Still Go Without Aid

Despite the new appeal, the UN warns that its plan cannot reach millions who urgently need help due to financing limits. Aid agencies say that underfunding is directly linked to rising hunger and overstretched health systems, with famine conditions reported in parts of Sudan and Gaza in 2025.

The ripple effects extend beyond the UN. The International Organization for Migration (IOM) has also slashed its 2026 appeal to $4.7 billion, down from $8.2 billion in 2025, reducing its target population from 101 million people to 41 million. As of the launch, IOM had secured only $1.3 billion, forcing the organization to lay off thousands of staff this year.

U.S. Share of Aid Funding Falls Sharply

The United States remains the largest donor, but its share of UN humanitarian funding dropped from more than one-third of total support in recent years to 15.6% in 2025, according to UN figures. The decline reflects major budget shifts in Washington and a growing reluctance among Western governments to maintain large overseas aid commitments during domestic economic pressure.

UN Calls for Stronger Protection of Humanitarian Workers

In addition to funding, the UN is urging countries to enhance protection for humanitarian personnel working in conflict zones, warning that without stronger security guarantees, global aid operations are at risk of collapse.

Humanitarian experts emphasize that shrinking budgets will deepen global instability, allowing conflicts and crises to expand unchecked. “The world is entering an era where needs are exploding, and funding is shrinking. That gap is measured in human lives,” one senior aid official said during the launch.