Modupe Olalere
Over 1.5 million Point of Sale (PoS) terminals power transactions across Nigeria, yet regulators are now targeting thousands of unregistered operators in a sweeping enforcement drive set to reshape the digital payments landscape. The Corporate Affairs Commission (CAC) announced the clampdown on December 6, 2025, launching a nationwide enforcement drive after years of unchecked growth in the PoS sector, fueled by rising fraud cases that drained consumers of billions of naira. Operators who skipped mandatory business registration face terminal seizures starting January 1, 2026, as security forces join the nationwide push to enforce compliance.
PoS agents filled in the gaps left by banks with few branches, especially in rural areas where more than 60% of Nigerians don’t have easy access to traditional banking. By transforming corner shops and market stalls into needed financial hubs that helped small traders and daily wage earners, these handheld gadgets processed more than N60 trillion in transactions at the end of the previous year. As a result of cash shortages caused by the last naira redesigns, users were driven to electronic payment methods, leading to the rapid onboarding of agents by fintech companies such as Moniepoint and OPay.
The industry experienced a meteoric rise during the COVID-19 lockdowns, when contactless choices became indispensable. As a result, the number of agents increased from fewer than 500,000 in 2020 to millions today. Point-of-sale (PoS) enterprises provided a reliable source of revenue for young and female entrepreneurs, who could earn commissions on every withdrawal or transfer processed through their terminals. Because of this expansion, digital payments became an essential means of remittances and bill payments in rural areas, thereby integrating point-of-sale systems into the routine business activities of people throughout the country.
As the number of fraudulent events increased, unregistered operators came under increased scrutiny. There were reports of cloned terminals and unauthorised cryptocurrency transactions, which eroded public faith in digital payment systems. House Representative Olufemi Bamisile highlighted concerns about PoS-linked scams infiltrating legitimate channels, prompting lawmakers to probe the economic and security risks posed by lax oversight. The CAC cited violations of the Companies and Allied Matters Act 2020 and Central Bank of Nigeria agent banking rules as key triggers for action.
Fintech companies faced blame for onboarding without verifying registrations, a move regulators called reckless that exposed users to theft and investment scams. “Effective 1 January 2026, no PoS operator will be allowed to operate without CAC registration. Security agencies will enforce nationwide compliance. Unregistered PoS terminals will be seized or shut down by security officials,” the CAC stated directly. Complaints from customers about overcharges and failed transactions at shady setups added pressure, leading to this firm’s deadline after earlier 2024 warnings met resistance.
PoS vendors rallied against the January 1 cutoff, arguing that registration fees and paperwork burden small-scale agents already struggling with slim margins in Nigeria’s digital payments ecosystem. Associations warned that mass shutdowns could idle millions of terminals overnight, disrupting services for the unbanked who rely on these outlets for cash access. “Fintechs enabling illegal operations will be placed on the watchlist and reported to the CBN,” the CAC cautioned, signalling broader accountability for platforms.
Industry experts said that PoS networks are essential to the economy because they create jobs for more than 2 million people and boost local economies. Customers shared the same concerns, saying that longer lines at the few remaining registered spots could slow purchases and raise fees in the short run. Experts in the fintech field praised the move to remove bad actors harming the industry’s image and called for phased enforcement to avoid chaos.
During the CAC’s PoS crackdown, fintech leaders said they would help with registration efforts but disagreed with the short deadline. They also offered agents free help. Companies like PalmPay and Paga stepped up their awareness campaigns, helping thousands of people complete their filings so they could continue doing business in Nigeria’s evolving digital payments system. Customers had mixed feelings: some were happy about safer transactions, but others were worried that they would have fewer choices in places that don’t get enough service.
Analysts pointed to potential boosts in trust as verified operators reduce fraud, though short-term dips in volume might challenge growth. The Central Bank’s prior guidelines on agent banking laid the groundwork, now amplified by CAC enforcement, to standardise practices across the board. Industry panels convened urgently to debate how to balance regulation with access in a market where PoS drives 40% of retail electronic transactions.
This nationwide PoS clampdown tests Nigeria’s push for broader financial inclusion, as regulators aim to protect the 40 million adults still outside the formal financial system who depend on agents to access it. Shutting down non-compliant terminals risks temporary service gaps, while full registration promises cleaner data trails to combat money laundering in digital payment channels. Operators adapted quickly in pilot zones, with compliance rates climbing after CAC portals simplified online filings.
By mid-2026, experts foresee a leaner but stronger PoS network, with registered agents gaining easier loans and partnerships from banks wary of informal players. Trust rebuilds through verified identities could spur transaction volumes past N80 trillion annually, cementing digital payments as a pillar of economic activity. Fears linger among rural agents about the reach of enforcement, but tech integrations like USSD registration make the path forward easier for most.
PoS networks stand at a crossroads in Nigeria’s digital payments evolution, where CAC’s firm stance promises accountability amid past excesses. Fintechs realign their tactics, agents scramble to meet deadlines, and users wait for smooth service amid the changes. This legislative shift lays the groundwork for a more structured industry in 2026, with compliance serving as the new entry requirement as 2025 draws to a close.