The Corporate Affairs Commission (CAC) has announced that unregistered Point-of-Sale (PoS) operators in Nigeria will face a nationwide shutdown and terminal seizure starting January 1, 2026. This move is part of a major enforcement exercise to formalize the sector, combat fraud, and ensure compliance with the law.
Justification for the Clampdown
The CAC has observed a significant number of PoS operators running businesses without proper registration, which is a violation of the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria (CBN) Agent Banking Regulations. The commission described this as a "reckless practice" that puts Nigeria's financial system and citizens' investments at risk, often facilitated by certain financial technology (fintech) companies.
Recent investigations have highlighted growing fraud cases involving PoS transactions, including cloned terminals, unprofiled agents, and weak customer identification practices, which the CAC aims to curb through this enforcement.
Enforcement Measures and Penalties
Effective from January 1, 2026, the following actions will be taken:
Operation Prohibition: No PoS operator will be allowed to conduct business without the required CAC registration.
Terminal Seizure/Shutdown: Security agencies have been mandated to enforce compliance nationwide, which includes seizing or shutting down unregistered PoS terminals.
Fintech Monitoring: Fintech companies found enabling illegal operations will be placed on a watchlist and reported to the CBN.
Legal Consequences: Operators who fail to comply may face severe legal penalties and prosecution.
Operators who have not yet registered their businesses are strongly advised to do so immediately to avoid these sanctions.
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