The Corporate Affairs Commission has warned that it will blacklist fintech companies enabling unregistered Point of Sale operations across Nigeria, signalling a stricter regulatory push to sanitise the agent banking sector. The Commission issued the notice on Saturday, stating that the growing number of PoS operators working without registration violates the Companies and Allied Matters Act 2020 and CBN agent banking rules, almost a year after enforcement discussions began.
The threat comes after the Commission announced compulsory business registration for PoS agents and gave operators until September 5, 2024, to comply following an initial deadline of July 7. Although the deadline has elapsed, the Commission says a disturbing surge in unregistered terminals persists, describing the trend as a risky practice allegedly supported by certain fintech platforms. It added that such operations expose the financial system and customer funds to potential fraud and misuse.
The CAC expects full compliance beginning January 1, 2026, warning that unregistered PoS businesses will no longer be permitted to operate. Security agencies will be deployed nationwide to seize or shut down terminals that fail to regularise, while fintechs aiding unregistered operations will be placed on a watchlist and reported to the Central Bank. The Commission advised PoS agents and aggregators to complete their registration immediately, emphasizing that compliance is not optional.
The registration directive has faced pushback from industry players. The Association of Mobile Money and Bank Agents of Nigeria argued last year that the mandate conflicts with earlier provisions of the Companies and Allied Matters Act 2004 regarding individuals operating as sub-agents. The case has since moved to court for interpretation on whether PoS sub-agents, who function similarly to bank agent branches, should fall under mandatory CAC registration.
The move stems from concerns about the rising fraud cases tied to PoS terminals and the Central Bank’s effort to tighten oversight on agent channels. Data from the Nigeria Inter-Bank Settlement System showed that PoS terminals were linked to over a quarter of fraud incidents recorded in 2023. The Commission maintains that the registration framework, backed legally by Section 863(1) of CAMA 2020 and CBN’s 2013 agent banking guidelines, will help secure customer transactions, protect fintech operators and stabilize the financial environment.
For MSMEs across Africa, especially small PoS operators, this enforcement wave signals a shift toward stricter digital finance compliance. While it could increase operational costs and documentation demands for micro-agents, it also promises stronger consumer trust and better access to formal financial services if implemented with transparency. The outcome of the pending court interpretation may further shape how small operators engage with Nigeria’s fast-growing fintech ecosystem in the coming year.
