CAC Threatens to Shut Down Unregistered POS Operators from January 2026

 CAC Sets January 2026 Deadline for Mandatory POS Registration

The Corporate Affairs Commission (CAC) has directed all Point-of-Sale (PoS) operators in Nigeria to register their businesses on or before January 1, 2026, or risk having their terminals seized.

This directive marks the government’s firmest step yet toward formalising a rapidly growing but poorly regulated PoS sector. It also increases compliance pressure on fintech companies managing large agent networks.

In a notice issued on December 6, 2025, the CAC raised concern about “the rising number of POS operators running without registration,” describing the practice as a violation of the Companies and Allied Matters Act (CAMA 2020) and the CBN Agent Banking Regulations. The Commission noted that the situation often enabled by some fintech firms poses serious risks to the financial system and Nigerians’ funds.

The CAC declared that “Effective 1 January 2026, no POS operator will be allowed to operate without CAC registration.”

Regulatory Background

▪ The directive follows the April 2024 federal mandate requiring POS agents to register in an effort to reduce fraud and improve transparency.

▪ Regulators have become increasingly concerned about the size and vulnerabilities of the sector, which now includes over 1.9 million POS agents nationwide.

▪ PoS transactions hit ₦10.51 trillion in Q1 2025, representing a 301.67% increase from the previous year (NIBSS data).

As POS terminals have become the main cash-access point for millions of Nigerians, the Central Bank of Nigeria (CBN) has intensified oversight. In August, the CBN restricted POS terminals to a 10-metre operating radius from their registered locations.

Key Enforcement Actions Announced by CAC

The CAC says it will now activate direct enforcement, with security agencies empowered to seize or shut down illegal terminals. Fintech companies supporting unregistered operators will be sanctioned.

As of March 2025, Nigeria had 8.36 million registered PoS terminals, out of which 5.90 million were active. Ongoing concerns include:

▪ Rising fraud
▪ Weak or incomplete KYC practices
▪ Poor supervision by super-agents and fintechs

CAC Official Warning (Full Statement Excerpt; December 6, 2025)

The Commission issued the following notice:

“The CAC has observed the rising number of PoS operators running without registration, violating CAMA 2020 and CBN Agent Banking Regulations.

“This reckless practice, often enabled by some fintech companies, puts Nigeria’s financial system and citizens’ investments at risk. This must stop.

EFFECTIVE 1 JANUARY 2026:

▪ Security agencies will enforce nationwide compliance.
▪ Unregistered PoS terminals will be seized or shut down by security officials.
▪ Fintechs enabling illegal operations will be placed on a watchlist and reported to the CBN.
▪ All operators are advised to regularize immediately.
▪ Compliance is mandatory.”