Fresh Trouble for PoS Operators as CAC Issues Deadline to Register Their Businesses
- There is a fresh battle brewing in the agent banking industry following a new order to Point of Sale (PoS) operators
- The Corporate Affairs Commission (CAC) has issued a fresh deadline to PoS to register their business or face arrest
- The initiative came only one day after the dispute between the commission and agent networks had escalated
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The push to formalize Nigeria’s booming agent banking ecosystem entered a tense phase after the Corporate Affairs Commission inaugurated a dedicated centre for the bulk registration of POS operators.
The initiative came only one day after the dispute between the commission and agent networks had escalated, underscoring the pressure to bring thousands of informal players under regulatory oversight.
Source: Getty Images
The registration centre was designed to accommodate long queues of operators seeking to incorporate their businesses, a requirement the commission said was essential for transparency and accountability in the expanding POS market.
POS agents push back against mandatory registration policy
The bulk-registration approach aimed to ease bottlenecks and accelerate processing, especially for operators scattered across states with limited CAC presence.
Although the commission expected a swift response, many POS operators balked at the mandatory nature of the exercise.
Major agent associations pushed back, arguing that compulsory registration imposed costs and administrative hurdles on small operators already struggling with rising inflation, insecurity and network-related disruptions.
The resistance soon escalated into legal threats. Several groups publicly announced their intention to sue the CAC, insisting the directive had no clear legal backing and disproportionately affected micro-entrepreneurs who rely on POS business as their primary income source.
Faced with mounting pressure and the likelihood of prolonged litigation, the commission softened its stance.
Deadline extension yields limited compliance
It extended the deadline for compliance, urging operators to take advantage of the additional window to complete their documentation.
Despite the extension, the CAC revealed on September 6, 2024, that compliance remained far below expectations.
According to the commission, a significant number of POS operators failed to register their businesses even after the grace period expired.
The low turnout reinforced concerns that many agents were either unaware of the directive, unconvinced of its legality or unwilling to shoulder the costs associated with registering a business name.
It also exposed the deeper challenge of regulating a fragmented industry where operators range from large agent networks to single kiosks in rural neighbourhoods.
CAC threatens sanctions for unregistered operators
With the extended deadline officially closed, the commission signaled a transition from persuasion to enforcement.
It warned that operators who continued to defy the directive would face sanctions as provided by law.
The CAC said unregistered POS agents could be shut down for operating without formal recognition.
The enforcement step, it argued, was necessary to protect consumers, reduce fraud risks and ensure accountability in a sector that handles billions of naira in daily transactions.
battle to shape the future of agent banking
The ongoing face-off highlights the struggle to balance consumer protection with the realities of a largely informal economy.
Source: Getty Images
As the CAC prepares for enforcement and operators weigh their options, the outcome of this standoff will likely shape the future of agent banking, financial inclusion and small-scale entrepreneurship across the country.
PoS operators to raise charges
Legit.ng earlier reported that Mobile Money Operators (MNOs) such as Opay, Palmpay, Moniepoint, and others have announced an increase in SMS alert fees, starting June 1, 2025.
The financial technology companies disclosed that the move was due to the 50% increase in tariffs by telecommunication companies.
A message from one of the fintech firms, Palmpay, said the new charges began on Sunday, June 1, 2025.
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Source: Legit.ng
