The Federal Government of Nigeria through has issued a strong warning to Point-of-Sale (POS) operators and fintech companies, including OPay, Moniepoint, PalmPay and others, as a new nationwide regulation on POS operations is set to take effect from January 1, 2026.
The directive, announced through the Corporate Affairs Commission (CAC) in collaboration with relevant security and financial regulatory agencies, is aimed at sanitising Nigeria’s rapidly growing agent-banking and POS sector, which authorities say has been infiltrated by unregistered operators and fraudulent activities.
Unregistered POS Operators Face Shutdown
Under the new regulation, all POS operators must be fully registered with the CAC before they can legally operate in any part of Nigeria. From January 1, 2026, unregistered POS terminals will be seized, while defaulting operators risk prosecution.
The CAC stated that the move is in line with the Companies and Allied Matters Act (CAMA) 2020 and existing Central Bank of Nigeria (CBN) Agent Banking Guidelines, which require all financial service agents to operate within a properly registered business structure.
According to the Commission, many POS operators currently operating across the country lack legal business registration, making it difficult for security agencies to track financial crimes linked to POS transactions.
Fintech Companies Under Watch
The Federal Government has also placed fintech companies that provide POS infrastructure under close monitoring. Firms such as OPay, Moniepoint, and others have been warned to ensure that only registered agents are onboarded on their platforms.
Regulators cautioned that any fintech company found enabling illegal POS operations or onboarding unregistered agents could face sanctions, regulatory penalties, or blacklisting.
This development comes amid rising concerns about:
Money laundering
Internet fraud
Kidnapping ransom payments
Illegal cash transactions facilitated through POS terminals
Why the FG Introduced the New POS Regulation
Authorities say the new policy is designed to:
Strengthen financial transparency
Improve security and traceability of transactions
Curb the growing use of POS channels for criminal activities
Protect consumers and investors
Ensure compliance with Nigeria’s financial laws
The government believes that a properly regulated POS ecosystem will strengthen public trust and reduce abuse within the financial system.
What POS Operators Should Do Now
POS operators across Nigeria are advised to:
1. Register their businesses with the CAC immediately
2. Ensure their business names and details match the records used by their fintech service providers
3. Update their KYC information with their POS service providers
4. Avoid operating under another person’s registered business name
Failure to comply before the January 1, 2026 deadline could lead to loss of business, confiscation of POS terminals, and possible legal action.
What This Means for Nigerians
For customers, the new regulation may initially reduce the number of available POS points, especially in rural and semi-urban areas. However, the government says the long-term benefit will be a safer, more reliable, and more transparent POS system.
Users are also encouraged to always conduct transactions only with registered and identifiable POS agents to avoid fraud.
As Nigeria’s cashless economy continues to expand, the Federal Government’s new POS regulation signals a major shift toward tighter control and accountability in the fintech and agent-banking sector. With January 1, 2026 fast approaching, both POS operators and fintech companies must act swiftly to avoid disruptions
