POS Operators Reject CAC Plan To Seize, Shutdown Terminals Over Registration, Ready for Court Battle
- PoS operators, through NAFIAN, have vowed to challenge the CAC’s mandatory registration enforcement in court, calling it unnecessary and overreaching.
- The CAC announced that effective 1 January 2026, all unregistered PoS terminals will be seized, and fintechs enabling illegal operations reported to the CBN
- In an exclusive chat with Legit.ng, NAFIAN president argues that PoS agents are already heavily regulated under CBN guidelines and NIBSS registration
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The National Association of Financial Inclusion Agents in Nigeria (NAFIAN) has questioned the Corporate Affairs Commission’s (CAC) directive mandating the registration of all point-of-sale (PoS) operator.
NAFIAN argues that the commission is overstepping its authority and vowing to challenge the enforcement plan in court.
Source: Facebook
PoS operators reject CAC clampdown
Speaking to exclusively to Legit.ng, Fasasi Sarafadeen, NAFIAN’s National President, said most PoS agents are already registered with their banks, while devices are concurrently registered with the Nigerian Interbank Settlement System (NIBSS).
He described the CAC’s demand for additional registration as unnecessary, stating:
“POS agents are already heavily regulated. Why is CAC seeking multiple registrations, and is it now a law enforcement agency?”
Sarafadeen emphasized that under CBN Agent Banking guidelines, only enterprise agents not individual agents operating under personal names, are required to register with CAC.
"I think CAC should focus on her mandate to general businesses, not usurping financial regulatory powers of the CBN (only regulator of agent banking). POS biz is the most regulated among informal businesses, and every POS agent is well registered with his or her respective financial institution while the device(POS) is also registered concurrently with Nigerian Interbank Settlements System(NIBSS). No other biz has such layers of profiling."
"So, what sorts of multiple registration is CAC asking, and is CAC the law enforcement agent which has responsibility of enforcing laws?"
Source: Twitter
NAFIAN advises CAC to withdraw directive
He noted that the plan directive by CAC will be challenged in court.
Sarafadeen, who is also the MD/CEO at Ecosystem Ltd, stressed:
"CAC should concentrate on her inefficient registration portal with numerous pending approvals, and work on why 50% of registered businesses in Nigeria are shutting down in their early years.
" CAC move is just revenue mobilisation as against the acclaimed security objective and such move is detrimental to financial inclusion drive in Nigeria.
"We are Urging CAC to withdraw the issued threat or we go back to the court to enforce individual agent fundamental human right."
CAC plan to clampdown on PoS operators
Earlier, Legit.ng reported that the CAC had announced in a 6 December public notice that, effective 1 January 2026, no PoS operator would be allowed to operate without CAC registration.
It also noted that Security agencies will enforce nationwide compliance, with unregistered PoS terminals subject to seizure and fintechs enabling illegal operations placed on watchlists.
The commission cited the growing number of unregistered PoS operators as a risk to Nigeria’s financial system and citizen investments, noting violations of the Companies and Allied Matters Act (CAMA) 2020 and CBN Agent Banking Regulations.
Source: Legit.ng
