POS Vendors Miss CAC's Jan. 1 Deadline to Ban Unregistered Operators
Concerns Over New POS Registration Rules
Point of Sale (POS) operators in Nigeria have voiced concerns over a new directive from the Corporate Affairs Commission (CAC), which mandates that all unregistered POS operators must cease operations by January 1, 2026. The CAC has issued a public notice highlighting the growing number of unregistered POS machines infiltrating the financial system and being used for illicit activities.
Operators who run multiple businesses alongside their POS services argue that their existing business registrations with the CAC already cover their POS operations. They claim there is no need to register separately, as their general business names already encompass the service.
Chuck Isaiah, who operates under the registered business name Diplomatic Venture, stated that his current registration adequately covers his POS service. He emphasized that he does not feel pressured by the CAC’s warning to delist unregistered operators. Isaiah also mentioned that his business involves selling phone accessories and laptops, with the POS serving primarily as a payment method.
Similarly, Olusola Folowo, who runs a frozen food business along with her POS service, shared the same sentiment. She believes her registered business name should exempt her from CAC sanctions on unregistered operators starting January 2026. Folowo pointed out that the profit margin is already low, and fintech companies still charge fees, making the additional registration requirement burdensome.
Anjola, another POS operator with the registered business name Anjoluwa Business Ventures, expressed concern about the CAC's directive. She noted that it could have serious implications for operators, stating that compliance is essential to avoid disruptions.
What the CAC Is Saying
The CAC has set January 1, 2026, as the deadline to blacklist fintech companies enabling unregistered Point of Sale (PoS) operations in Nigeria. This was disclosed in a statement issued by the Commission's management. The development comes nearly a year after the CAC began taking drastic actions, including shutting down PoS businesses that failed to register before its September 5 deadline, which had already lapsed at the time.
The CAC stated that it has observed a rising number of PoS operators allegedly running without registration, in violation of CAMA 2020 and CBN agent banking regulations. According to the CAC, "This reckless practice, often enabled by some fintech companies, puts Nigeria's financial system and citizens' investments at risk."
The Commission warned that the practice must stop effective January 1, 2026, adding that no PoS operator will be allowed to operate without CAC registration. Additionally, it stressed that security agencies will be engaged to enforce compliance nationwide. "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," the statement added.
The CAC also advised all operators to regularise their registration immediately, stating that compliance is mandatory.
Background and Context
In May last year, the CAC announced that PoS agents of major fintechs in Nigeria, including OPay, Palmpay, and Moniepoint, among others, had been given a deadline of July 7, 2024, to register their businesses. The Registrar-General of the CAC, Hussaini Magaji, who made the announcement, said this was part of an agreement reached with PoS operators after a meeting in Abuja. According to him, the registration requirement is also in line with legal provisions and directives of the Central Bank of Nigeria (CBN).
The Commission later extended the deadline by 60 days to September 5, 2024. The extension came with a warning that any operator who failed to meet the new deadline would face prosecution and risk losing their business.
The directive on the registration of PoS businesses came against the backdrop of frequent fraud incidents involving PoS terminals and the CBN's efforts to curb trading in cryptocurrency or other virtual currencies. According to a report by the Nigeria Inter-Bank Settlement System (NIBSS) Plc, PoS terminals accounted for 26.37% of fraud incidents in 2023.
Record Transactions and Growth
Meanwhile, data obtained from the Nigeria Inter-Bank Settlement System (NIBSS) revealed that the value of transactions over Point of Sales (PoS) terminals in Nigeria surged to N18 trillion in 2024, hitting an all-time yearly record. This represents a 69% increase when compared with the value of PoS transactions in 2023 at N10.7 trillion.
The volume of transactions also rose by 8% year-on-year to 1.5 billion in 2024 compared with the 1.4 billion recorded in the previous year. While commercial banks had been the major drivers of PoS terminal availability in the past, the entrance of fintechs into this space has seen the number of PoS devices in the market grow astronomically.
In 2024, NIBSS data showed that the number of PoS terminals deployed across the country more than doubled to 5.5 million from 2.4 million recorded at the end of 2023. This represents a 129% increase. Meanwhile, registered PoS terminals in the country also jumped from 3.5 million in December 2023 to 7.8 million in December 2024, indicating that about 4.3 million new PoS machines were registered last year.
Industry analysts believe several factors contribute to the increasing adoption of POS as a means of transaction by Nigerians. Central among these is the difficulty in accessing cash through the usual banking channels.
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