Nigeria to Shut Down Unregistered PoS Operators From January 2026
TLDR
- Nigeria’s Corporate Affairs Commission (CAC) has directed all point-of-sale (PoS) operators to register their businesses before January 1, 2026
- The instruction is the government’s strongest move yet to formalise a fast-growing industry that now processes trillions of naira in cash transactions
- The directive follows rising regulatory scrutiny of Nigeria’s 1.9 million-strong agent-banking network, which processed ₦10.51 trillion in PoS transactions in Q1 2025
Nigeria’s Corporate Affairs Commission (CAC) has directed all point-of-sale (PoS) operators to register their businesses before January 1, 2026, warning that terminals belonging to unregistered agents will be seized. The instruction is the government’s strongest move yet to formalise a fast-growing industry that now processes trillions of naira in cash transactions and serves as a key financial access point for millions of citizens.
In a notice issued on December 6, the CAC said many PoS operators are working without registration, violating the Companies and Allied Matters Act and the Central Bank of Nigeria’s (CBN) agent-banking rules. The agency said the practice exposes the financial system to fraud and poor oversight. It added that security agencies will enforce compliance nationwide, and fintech companies enabling unregistered agents will be reported to the CBN.
The directive follows rising regulatory scrutiny of Nigeria’s 1.9 million-strong agent-banking network, which processed ₦10.51 trillion in PoS transactions in Q1 2025. Earlier this year, the CBN restricted PoS terminals to a 10-metre radius of their registered address as part of wider efforts to tighten controls.
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Points clés à retenir
Nigeria’s PoS and agent-banking networks have become essential to financial inclusion, especially in rural and cash-dependent communities. But the sector has expanded faster than regulators can monitor, creating gaps in KYC processes, fraud controls, and operational oversight. The CAC’s directive marks the first time the corporate regulator is taking direct action on PoS compliance, signalling a shift from soft guidance to enforcement. The move also increases pressure on fintechs, which have grown by onboarding millions of agents through flexible sign-up processes. These networks have been linked to rising fraud cases, prompting regulators to demand stronger identification, address verification, and monitoring. By requiring CAC registration, authorities aim to create traceable business records for PoS operators, improve accountability, and reduce anonymity in the agent-banking ecosystem. The policy may shrink the number of informal operators but could strengthen trust in the system over time. Fintechs will likely need to overhaul onboarding workflows, KYC checks, and network audits to remain compliant.
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