Okay News reports that the warning takes effect on January 1, 2026, with security agencies set to begin nationwide enforcement immediately after.
The CAC confirmed that unregistered PoS terminals will be seized and operators shut down, while fintech companies enabling the violations will be placed on a watchlist and reported to the CBN.
Why the Crackdown?
The Commission noted that the rising number of unregistered PoS agents is partly driven by fintech platforms that allow operators to bypass statutory requirements.
It said the practice endangers Nigeria’s financial system and exposes users to fraud and investment risk.
The CAC restated that all PoS operators must complete registration immediately, describing compliance as mandatory and warning that enforcement will be strict.
Background: The Registration Mandate
The enforcement push follows a process that began last year.
The Registrar-General of the CAC, Hussaini Magaji, announced in May 2024 that PoS agents for major fintech brands—including OPay, PalmPay and Moniepoint—had until July 7, 2024 to register.
That deadline was later extended by 60 days to September 5, 2024, with a warning that violators risk prosecution and business closure.
Legal Challenge
The regulatory action has faced resistance.
The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) argued that the requirement contradicts CAMA provisions.
Its General Secretary, Oluwasegun Elegbede, said the matter is now before the court, which is expected to determine whether individual sub-agents qualify as entities requiring CAC registration. Hearing was scheduled for September.
Fraud Prevention
The registration mandate aligns with efforts to curb fraud involving PoS terminals and reduce the use of cryptocurrency and virtual currencies in illicit transactions.
Data from the Nigeria Inter-Bank Settlement System (NIBSS) Plc shows that PoS channels accounted for 26.37 percent of fraud incidents in 2023.
Magaji has maintained that the directive is supported by Section 863(1) of CAMA 2020 and by the CBN’s 2013 agent-banking guidelines.
He said the registration is designed to protect fintech businesses, secure customer transactions and reinforce economic stability.
What Happens Next?
Starting January 1, 2026:
- Security agencies will begin enforcement nationwide
- Unregistered PoS terminals will be seized
- Non-compliant operators will be shut down
- Fintech companies supporting unregistered agents will be watchlisted
- Violators will be reported to the CBN
The CAC has urged all unregistered PoS operators to complete their registration immediately to avoid penalties and business disruption.
