From January unregistered POS terminals will be seized and fintechs will be on watchlist – CAC

CAC’s Crackdown on Unregistered POS Terminals and Fintech Oversight

The Corporate Affairs Commission (CAC) of Nigeria has announced a sweeping enforcement campaign set to begin on January 1, 2026, targeting unregistered Point-of-Sale (POS) operators across the country.

This directive represents one of the most aggressive regulatory moves in recent years to formalize the rapidly expanding POS industry and ensure compliance with national laws.

According to CAC’s statement, any POS terminal operating without proper registration will be seized or shut down by security agencies. The commission emphasized that this measure is necessary to curb what it described as a “reckless practice” that undermines Nigeria’s financial system.

The surge in unregistered POS operators has been linked to violations of the Companies and Allied Matters Act (CAMA 2020) and the Central Bank of Nigeria’s Agent Banking Regulations, both of which require businesses to be properly registered and compliant with financial oversight standards.

The CAC further accused certain fintech companies of enabling illegal operations by onboarding unregistered agents onto their platforms. These fintechs, according to the commission, will be placed on a regulatory watchlist and reported to the Central Bank of Nigeria (CBN) for possible sanctions.

This move signals a tightening of oversight not only on small-scale POS operators but also on the larger financial technology ecosystem that has facilitated their growth.

The commission’s concern stems from the risks posed by unregulated POS activities. Millions of Nigerians, particularly in rural and underserved areas, rely on POS agents for financial transactions such as cash withdrawals, deposits, and bill payments.

However, the lack of registration exposes these users to fraud, financial insecurity, and systemic instability. By enforcing compliance, CAC aims to protect consumers while strengthening the integrity of Nigeria’s financial sector.

This crackdown is not entirely unexpected. The CAC had previously threatened similar enforcement actions in 2024, though those efforts faced resistance from operators who argued that registration requirements would stifle small businesses.

The new directive, however, leaves little room for negotiation. Operators have been advised to regularize their businesses immediately to avoid penalties, while fintechs are expected to tighten their compliance frameworks to prevent onboarding unregistered agents.

The broader implication of this policy is a significant shift toward formalization of Nigeria’s informal financial services sector. While POS businesses have provided critical access to banking services in areas where traditional banks are scarce, the government now insists that such access must not come at the expense of regulatory compliance.

This enforcement drive may lead to short-term disruptions in service availability, but it is expected to create a more secure and transparent financial environment in the long run.

In summary, beginning January 2026, unregistered POS terminals will be seized, operators risk arrest, and fintechs enabling illegal practices will face heightened scrutiny.

The CAC’s directive underscores Nigeria’s determination to balance financial inclusion with regulatory oversight, ensuring that innovation in fintech does not compromise the stability of the nation’s financial system.