CAC Warns Fintechs, Threatens CBN Sanctions Over Unregistered PoS Operators in Nigeria
The Corporate Affairs Commission (CAC) has issued a strong warning to fintech companies in Nigeria, declaring that any platform found supporting unregistered Point of Sale (PoS) operators will be blacklisted and reported to the Central Bank of Nigeria (CBN) for regulatory action.
In a public notice released on Saturday, December 6, the Commission described the proliferation of unregistered agents as “reckless” and harmful to the country’s financial system.
Fintech Giants Under Scrutiny
The warning targets the expansive agent networks built by leading fintech companies, Opay, Moniepoint, and Palmpay, whose rapid growth has depended heavily on onboarding PoS operators without enforcing corporate registration requirements.
According to industry data:
- Opay operates over 563,000 agents, representing 37% of Nigeria’s agency banking market.
- Moniepoint serves more than 303,000 agents, controlling about 20% of the market.
- Palmpay announced in June 2023 that it had surpassed 500,000 PoS agents nationwide.
Together, these fintech platforms dominate Nigeria’s 1.9 million PoS operators and are now at the centre of the CAC’s enforcement drive.
Regulators Cite Massive Transaction Growth
The CAC’s warning comes amid unprecedented growth in PoS activity. Data from the Nigeria Inter-Bank Settlement System (NIBSS) shows that PoS terminals processed ₦10.51 trillion in the first quarter of 2025, up 301.67% compared to the previous year.
As of March 2025:
- 8.36 million PoS terminals were registered nationwide
- 5.90 million were actively deployed
This explosive growth has made PoS operations a crucial pillar of Nigeria’s payments ecosystem.
Mandatory Registration Begins January 1, 2026
The CAC announced that starting January 1, 2026, no PoS operator will be permitted to conduct business without CAC registration. The Commission said security agencies will enforce the directive nationwide, with unregistered terminals subject to seizure or immediate shutdown.
The Commission reiterated that compliance responsibilities extend beyond individual PoS agents, placing accountability directly on fintech companies that issue terminals and manage agent networks.
The surge in unregistered operators violates both the Companies and Allied Matters Act (CAMA) 2020 and the CBN’s Agent Banking Regulations, the CAC said, adding that such practices expose citizens to financial risks.
Second Attempt at Enforcement After 2024 Pushback
This marks the CAC’s second major attempt to enforce PoS registration.
In May 2024, the Commission instructed mobile money and PoS agents to register by July 7, 2024, later extending the deadline to September 5, 2024. That effort faced resistance from the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), which challenged the directive on legal grounds. The case proceeded to court with hearings scheduled for September 2024.
Fintech Sector Already Facing Stronger CBN Oversight
The new threat to report fintech companies to the CBN carries significant implications as the sector already faces heightened regulatory pressure.
In August 2025, the CBN introduced new restrictions requiring all PoS terminals to operate within a 10-meter radius of their registered business address. The policy was part of a broader crackdown aimed at curbing fraud and enhancing compliance.
CBN data shows that PoS channels accounted for 26.37% of all fraud cases recorded in 2023, one of the highest among electronic payment channels.
Conclusion
The CAC’s latest directive signals a more aggressive regulatory era for Nigeria’s PoS and agency banking ecosystem. With fintech giants now directly accountable for agent verification, the enforcement scheduled for 2026 could reshape one of the country’s most vital financial service channels.
