For years, the PoS (Point of Sale) business has been the “saviour” of the Nigerian streets. It’s how we get cash when the ATMs are empty (which is always), how we transfer “urgent 2k,” and how millions of young Nigerians found a way to survive the unemployment crisis. But as of yesterday, December 6, 2025, the Corporate Affairs Commission (CAC) has officially said: “No PoS operator will be allowed to operate without CAC registration.”
Let’s dissect exactly what is happening, why the government is angry, and what this means for the guy under the umbrella on your street corner.
If you look closely at that notice again, you will observe that the language is not polite. It is not asking. It is commanding.
- The Date: January 1, 2026. That is less than a month away.
- The Threat: “Seisure or shutdown of unregistered PoS terminals.”
- The Target: Not just the agents, but the Fintechs (the OPays, Moniepoints, PalmPays) who enable them.
This is the big moment in a fight that began in 2024. Remember July 2024? The CAC gave a deadline. They extended it to September. Many people rushed to register, but millions ignored it. They thought, “This is Nigeria, nothing will happen.”
Why is the Government Doing This?
To the average Nigerian, this looks like the government just wanting to tax poor people. And yes, revenue is part of it. But if we are honest, there is a much darker reason why this crackdown is happening now.
1. The “One-Chance” & Kidnapping Epidemic
You know the story. You enter a taxi. They rob you. But they don’t just take your cash; they bring out a PoS machine. They force you to swipe your card and empty your account.
- The Problem: When the police track that PoS terminal, it leads to a dead end. The terminal is registered to “User 12345” with no address, no valid ID, and a fake phone number.
- The Solution: The CAC wants every single terminal tied to a registered legal entity. If a terminal is used for fraud, they want to know exactly who owns it, where they live, and who can be arrested.
2. The Fraud Numbers (The Data)
The numbers are terrifying. By late 2025, PoS fraud had become an industry of its own. Reports from the Nigeria Inter-Bank Settlement System (NIBSS) showed that in just one quarter, billions of Naira were lost to fraud involving “untraceable” agents. The financial system was bleeding, and the anonymity of PoS agents was the open wound.
What is CAMA 2020?
The notice references CAMA 2020 (Companies and Allied Matters Act 2020), with Section 863 being particularly significant.
It explicitly states that a person or association of persons shall not carry on business in Nigeria as a company, limited liability partnership, limited partnership, or under a business name without being registered.
- In English: If you are trading for profit and you are not using your full legal name (e.g., “Chinedu Okafor” vs “Chinedu Ventures”), you are breaking the law.
- The PoS Context: Most agents operate as “Business Names” (Sole Proprietorships). The government is saying, “You are a bank branch. You handle public money. You cannot be a ghost.”
The Panic on the Streets
Imagine the scene right now in Alaba Market or Wuse Zone 4.
The Operator’s Dilemma:
Registration costs money. officially, it’s around ₦10,000 to register a Business Name with the CAC. But the process is technical. Most agents have to pay a lawyer or an “accredited agent” to do it for them, which bumps the price to ₦20,000 or ₦30,000.
For a small operator making ₦100 profit per transaction, that is a lot of capital.
- But the alternative? Losing their terminal (which costs ₦20k–₦50k) and their livelihood on January 1st.
The Fintech Squeeze:
This is the most interesting part of the story. The CAC notice says: “Fintechs enabling illegal operations will be placed on watchlist and reported to CBN.”
This is a direct shot at the big Fintech giants. For years, their growth strategy was “Aggressive Acquisition.” They handed out terminals to anyone with a pulse and a smartphone.
Now, the CAC is holding a gun to their heads. If OPay or Moniepoint allows an unregistered agent to transact after Jan 1, 2026, the CBN (Central Bank) could revoke their license.
Expect to see: A mass purge. In the coming weeks, you will likely get messages from your PoS provider saying, “Upload your CAC certificate now or your terminal will be blocked.”
The Future: What Happens on January 2, 2026?
If this enforcement is real (and the tone suggests it is), the landscape of Nigeria will change.
- Fewer Agents: The “umbrella” stands on every corner might disappear. We might go back to having agents only in shops, pharmacies, and supermarkets—places that are already registered businesses.
- Higher Charges: If the supply of agents drops and the cost of doing business (registration, taxes) goes up, guess who pays? You and me. That ₦100 charge might become ₦200.
- Safety: Ideally, fraud should drop. If a PoS is used to rob you, the police should theoretically be able to pull up the CAC records and find the owner immediately.
Summary
This notice is the final cleaning of the Augean stables. The “Wild West” days of Nigerian Fintech are ending. The government is asserting its sovereignty over the digital economy. It will be painful, it will be messy, and there will be a lot of shouting matches at PoS stands come January.
But ultimately, it is a sign that the Nigerian digital economy is maturing. You cannot build a First World banking system on a Third World informal structure.
What would you like me to do next?
- I can draft a step-by-step guide on how an agent can actually register (using the CAC portal) in case you want to share this with someone.
- I can research the specific penalties for Fintechs to see just how much trouble they are in.
- Or we can debate: Do you think this will actually curb fraud, or will the criminals just find a new way?
