The Corporate Affairs Commission (CAC) has issued a stern and decisive warning to the financial technology (fintech) sector, threatening to place companies on a watchlist and report them to the Central Bank of Nigeria (CBN) if they continue to enable unregistered Point of Sale (PoS) operations across the country.
The warning, contained in a statement issued by the Commission’s management on Saturday, December 6, 2025, marks an escalation in the government’s year-long drive to formalize the ubiquitous agent banking system.
The “Reckless Practice” and New Deadline
The CAC observed a continued surge in unregistered PoS operators, a practice it described as “reckless and dangerous” to Nigeria’s financial stability. The Commission directly accused some fintech companies of enabling this trend by onboarding unregistered agents, which violates both the Companies and Allied Matters Act (CAMA) 2020 and the CBN’s Agent Banking Regulations.
The consequence for non-compliance is severe, with the CAC announcing a definitive enforcement date:
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Final Deadline: January 1, 2026.
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Enforcement Action: Starting in the new year, security agencies have been mandated to enforce nationwide compliance, including the seizure or shutdown of unregistered PoS terminals.
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Fintech Sanctions: Fintechs found enabling illegal operations “will be placed on the watchlist and reported to the CBN” for regulatory action.
The Rationale: Curbing Fraud and Risk
The push for mandatory registration is driven by a need to curb rising financial crimes and security risks associated with unprofiled agents. Lawmakers and financial regulators have repeatedly expressed concern over:
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Weak KYC: Unregistered agents often operate with weak Know-Your-Customer (KYC) standards, making them susceptible to exploitation.
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Criminal Exploitation: The lack of formal registration and proper profiling makes it extremely difficult for security agencies to trace transactions linked to fraud, money laundering, and even the payment of ransoms in kidnapping cases.
By formalizing the sector, the CAC aims to assign a unique business identity to every operator, ensuring that all PoS accounts meet the necessary tier 3 verification standards for financial integrity.
History of the Directive
This renewed threat comes nearly a year after the CAC initially began enforcement efforts.
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2024 Deadlines: The initial mandatory registration directive was issued in May 2024, with a deadline set for July 7, 2024, which was later extended to September 5, 2024.
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Low Compliance: Despite the extension, the CAC reported low compliance, noting that a significant number of operators failed to register their businesses. The Nigeria Inter-Bank Settlement System (NIBSS) estimated that over 1.9 million PoS agents operate nationwide, with only a fraction achieving registration by the initial deadlines.
The latest announcement on December 6, 2025, serves as the final warning, demanding immediate regularization to protect consumers and safeguard the integrity of Nigeria’s digital financial system before the end-of-year deadline.
Would you like to know more about the specific requirements for PoS operators to register with the CAC or the potential legal consequences for non-compliant fintech companies?
