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FG Orders Nationwide Ban on PoS Operators without CAC Business Registration

CAC Business Registration
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The Federal Government has officially ordered a nationwide ban on all Point of Sale (PoS) operators who are not registered with the Corporate Affairs Commission (CAC), citing rising cases of fraud, identity theft, and regulatory abuses across the financial system.

The announcement, issued on Saturday, December 6, follows mounting concerns over the increasing number of PoS agents operating without traceable business identities. This is tagged as a violation of the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria (CBN) Agent Banking Regulations.

According to the CAC, many unregistered PoS terminals have been linked to fraudulent activities. The government described the trend as dangerous, warning that the practice “puts Nigeria’s financial system and citizens’ funds at serious risk.”

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New Enforcement Date Set

The Federal Government announced a strict compliance deadline:

  • Effective January 1, 2026: No PoS operator will be allowed to operate without CAC registration.
  • Security agencies will enforce compliance nationwide.
  • All unregistered PoS terminals risk being seized or shut down.
  • Fintech companies enabling unregistered PoS operators will be placed on a watchlist and reported to the CBN.

Operators have been advised to register their businesses immediately to avoid sanctions.

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Why the Crackdown?

This move follows several months of investigations by security and regulatory agencies:

In May 2025, the Police Special Fraud Unit and EFCC arrested multiple suspects linked to PoS fraud after banks reported over ₦9 billion in unauthorized withdrawals.

Authorities traced many of these cases to unregistered PoS terminals, which were used for identity theft and money laundering.

In August 2025, the CBN sanctioned several fintech companies for onboarding PoS agents without proper Know Your Customer (KYC) checks. Over 400 cloned terminals were reportedly connected to kidnapping, betting scams, and pension fund theft.

Advocacy groups and lawmakers had repeatedly called for urgent reforms as fraudulent PoS activities continued to undermine public trust in Nigeria’s agent banking system.

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The new enforcement directive is seen as a firm step by the government to clean up the sector, protect citizens’ funds, and strengthen financial security across the country.

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