(DDM) The Corporate Affairs Commission (CAC) has issued one of its strongest regulatory warnings in recent years, announcing an impending nationwide crackdown on all unregistered Point of Sale (PoS) businesses beginning January 1, 2026.
DDM gathered that the declaration follows months of mounting concerns within the Commission over the rapid multiplication of PoS terminals operating outside the legal framework of the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria (CBN) Agent Banking Regulations.
The public notice, released on Saturday, stated clearly that thousands of PoS agents are running illegally, with many allegedly assisted by fintech companies that provide digital gateways without proper due diligence.
CAC warned that these unregulated financial agents expose millions of Nigerians to fraud, financial instability, identity theft, and broader national security breaches.
According to the Commission, the situation has become too dangerous to ignore, prompting a decisive clampdown that will be enforced in collaboration with national security agencies starting from the first day of 2026.
The statement from CAC stressed that any PoS operator still functioning without proper registration after the deadline will face immediate shutdown, confiscation of terminals, or possible prosecution.
The Commission further insisted that fine tech companies enabling these unregistered operators will be placed under strict monitoring and reported to the Central Bank of Nigeria for regulatory sanctions.
Background findings by DDM show that the PoS boom began around 2018, rising sharply during the COVID-19 lockdown and exploding nationwide during the 2023 cash scarcity crisis.
With millions relying on PoS agents for withdrawals, transfers, and small-business transactions, the industry quickly became one of Nigeria’s most accessible financial services sectors.
However, the ease of entry into the market also opened the door for criminal elements who exploited the system for fraud, illegal withdrawals, card cloning, and fake transfer scams, prompting repeated warnings from the CBN.
CAC’s decision marks the first major attempt to formalise the PoS sector by forcing operators to register either as sole proprietors, business names, or full companies, thereby placing them under legal, tax, and accountability frameworks.
Experts told DDM that the move may significantly reshape Nigeria’s informal financial landscape, bringing structure to a system that has grown too fast for regulators to control.
Security analysts also believe the policy will help curb the use of untraceable PoS terminals for ransom payments, illegal cash movement, and fraudulent fintech activity.
While some Nigerians fear that the clampdown may initially disrupt access to cash in rural and semi-urban communities, financial policy observers argue that the long-term benefits outweigh short-term inconvenience.
CAC urged all PoS operators to regularise their status immediately, emphasising that compliance is not optional.
The Commission reiterated that the era of unregulated PoS operations is ending and warned that January 1, 2026, remains a firm deadline with no extensions expected.