CAC Teams Up with EFCC to Enforce PoS Registration Across Nigeria

Only 20% of operators registered as agencies raise concerns over financial crime risks

The Corporate Affairs Commission (CAC) and the Economic and Financial Crimes Commission (EFCC) have agreed to strengthen collaboration to enforce the registration of Point of Sale (PoS) operators nationwide, amid concerns that unregistered operators could be facilitating financial crimes.

The move was announced on Thursday during a courtesy visit by the Chairman of the CAC Board, Senator Hussaini Ibrahim Idah, to the Executive Chairman of the EFCC, Ola Olukoyede, at the anti-graft agency’s headquarters in Abuja.

The two agencies expressed concern over the low level of compliance among PoS operators and warned that inadequate regulation of the sector poses risks to Nigeria’s financial system and national security.

This is coming months after the CAC’s deadline for all operators to get registered had lapsed.

What they are saying

Speaking during the visit, Idah disclosed that only about 20% of PoS operators in the country are currently registered with the CAC, despite regulatory requirements mandating business registration.

According to him, the situation violates the provisions of the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria’s Agent Banking Regulations 2026, which require all businesses operating under a business name to be registered.

• “Presently, only about 20% of PoS operators are registered with CAC, a situation inconsistent with the Companies and Allied Matters Act, CAMA 2020, and the Central Bank of Nigeria Agent Banking Regulations 2026,” he said.

He added that the CAC is seeking EFCC’s support in ensuring compliance across the country while also developing a reliable database of PoS operators for law enforcement purposes.

More Insights

The CAC chairman warned that emerging evidence suggests that PoS terminals are increasingly being used to move illicit funds.

According to him, criminal proceeds, including ransom payments linked to kidnapping incidents, are sometimes routed through PoS channels, highlighting the need for stronger oversight of operators.

• “Furthermore, Mr. Chairman, we seek closer cooperation in developing a reliable database of PoS operators for use by the EFCC and other law enforcement agencies,” Idah said.

He noted that a comprehensive database would strengthen investigations and improve the ability of security agencies to track suspicious transactions.

Idah said both institutions have interconnected mandates that require closer cooperation.

While the CAC is responsible for registering and regulating companies in Nigeria, the EFCC investigates and prosecutes economic and financial crimes.

According to him, fraudulent actors often exploit corporate entities to perpetrate financial crimes, making collaboration between both agencies essential.

• “When companies are misused for fraud or money laundering, the mandates of both institutions are directly affected. Neither of the two agencies can therefore fight and win the war against economic and financial offences, especially those perpetrated through corporate entities, if we work alone,” he said.

He identified data and intelligence sharing, public sensitisation, and staff capacity building as key areas for collaboration.

EFCC backs compliance drive

Responding, EFCC Chairman Ola Olukoyede described the activities of unregulated PoS operators as a major challenge within Nigeria’s financial ecosystem.

According to him, the absence of effective regulation could create vulnerabilities that criminals may exploit.

• “If you do not regulate the activities of such key players, you will be having major problems and challenges within your financial ecosystem,” Olukoyede said.

He reaffirmed the commission’s commitment to working closely with the CAC to promote compliance and tackle economic crimes.

Olukoyede also described the CAC as a critical institution for economic growth, noting that it serves as the first point of contact for many foreign investors entering Nigeria.

The EFCC chairman further disclosed that the commission has established a dedicated desk to handle matters involving the CAC and revealed that ongoing investigations involving about 200 companies have already yielded significant results.

What you should know

In December last year, the CAC announced that all PoS operators must obtain CAC registration before January 1, 2026, warning that unregistered terminals would be seized and operators shut down.

• The Commission said the move is necessary to curb the rising number of unregistered agents, a trend it described as dangerous to the financial system and a violation of both the Companies and Allied Matters Act (CAMA) 2020 and CBN’s agent-banking guidelines.
• The registration exercise was first announced in May 2024, when the Commission declared that PoS agents of major fintechs in Nigeria, including OPay, Palmpay, and Moniepoint, among others, had been given a deadline of July 7, 2024, to register their business.

However, the deadlines have been shifted multiple times since then, yet only 20% of the operators are currently registered, according to the Commission.