CAC and EFCC intensify crackdown on unregistered PoS operators in Nigeria as compliance remains low and concerns over financial crimes grow

The Corporate Affairs Commission (CAC) and the Economic and Financial Crimes Commission (EFCC) have agreed to intensify enforcement against unregistered Point of Sale (PoS) operators across Nigeria, following concerns over regulatory non-compliance and rising financial crime risks.

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The decision was reached during a meeting in Abuja between CAC Board Chairman, Senator Hussaini Ibrahim Idah, and EFCC Chairman, Ola Olukoyede, where both agencies committed to strengthening oversight of the rapidly expanding PoS sector.

According to the CAC, only about 20 per cent of PoS operators nationwide have complied with mandatory business registration requirements, despite existing regulations under the Companies and Allied Matters Act (CAMA) 2020 and Central Bank of Nigeria agent banking guidelines.

Idah said the collaboration with the EFCC is necessary to improve compliance levels and establish a reliable database of operators that can support financial monitoring and criminal investigations.

He also raised concerns that some PoS terminals may be exploited for illicit financial activities, including the movement of ransom payments linked to kidnapping cases.

“Some criminals may be using PoS terminals to move illegal funds. A comprehensive database will help security agencies track suspicious transactions more effectively,” he noted.

The CAC chairman added that closer cooperation between both agencies is essential, given that while the CAC handles business registration and regulation, the EFCC is responsible for investigating financial crimes.

EFCC Chairman Ola Olukoyede, in his response, described unregulated PoS operations as a growing risk to Nigeria’s financial system, warning that criminal elements could exploit regulatory gaps.

He pledged the commission’s support for the joint initiative, noting that improved compliance would strengthen financial integrity and investor confidence in the economy.

Olukoyede also disclosed that the EFCC has established a dedicated desk to handle CAC-related matters, adding that ongoing investigations involving about 200 companies have already yielded significant findings.

The renewed enforcement drive follows earlier directives issued in December 2025 requiring all PoS operators to register their businesses by January 1, 2026, with warnings of sanctions, including terminal seizure and business closure, for defaulters.

Despite repeated deadlines and extensions since the initial rollout in 2024, compliance has remained low, prompting renewed regulatory action from both agencies.

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Authorities say the latest collaboration is part of broader efforts to strengthen Nigeria’s financial oversight framework and reduce opportunities for fraud and money laundering within the growing digital payments sector.