The Association of Mobile Money and Bank Agents in Nigeria has clarified that its members are not legally required to register with the Corporate Affairs Commission (CAC) before operating Point of Sale (POS) businesses across the country.
According to the association, POS operators are permitted under Nigerian law to function as individuals or non-entities, and existing regulatory and identification frameworks already provide sufficient oversight and security for their operations.
Speaking on behalf of the association, its General Secretary, Elegede Segun, explained that operators of POS terminals are already subjected to multiple layers of verification and monitoring through the financial system, making additional compulsory registration with the CAC unnecessary.
He dismissed claims suggesting the existence of “illegal” POS operators, describing such assertions as misleading and unsupported by law. According to him, no individual can operate a POS terminal in Nigeria without first undergoing rigorous identification and approval processes within the banking and payment system.
Segun noted that before a POS terminal becomes functional, the operator must obtain a Terminal Identification (Terminal ID) issued through the Nigeria Inter-Bank Settlement System (NIBSS). In addition, operators must have a valid bank account, Bank Verification Number (BVN), and National Identity Number (NIN), all of which are linked and verifiable within national databases.
“These requirements already provide a robust security framework,” he said. “A POS operator cannot simply pick up a machine from anywhere and begin operations. There is a detailed onboarding process that ensures traceability, accountability, and compliance.”
He further questioned the rationale behind the push to compel POS operators to register their businesses with the CAC, asking why this requirement appears to be targeted at POS agents while many small-scale and informal businesses across the country operate without such registration.
“What is confusing is the insistence on CAC registration for POS operators,” he said. “Why should this category of small business be treated differently from others? People selling firewood, grinding pepper, or running other micro-scale businesses are not compelled to register before they can operate.”
Segun pointed to provisions of the Companies and Allied Matters Act (CAMA) 2020, which he said clearly allow individuals to conduct business either as registered entities or as non-entities.
“The law is very clear,” he stated. “Under CAMA 2020, a person can exist as an individual or as a non-entity while doing business. You are not forced by law to register before you can operate, especially at the micro-business level.”
He stressed that Nigerian law does not mandate compulsory business registration for all forms of economic activity, adding that partnerships and sole proprietorships can legally operate without CAC registration unless they choose to formalise.
Segun also criticised claims suggesting that unregistered POS operators are operating illegally, insisting that such narratives create unnecessary panic and could harm thousands of Nigerians who rely on POS businesses for their daily income.
“There is nothing like illegal POS operators,” he said. “As long as an operator has a terminal ID from NIBSS and has met all banking and identity verification requirements, that person is operating within the law.”
He warned that forcing CAC registration on all POS operators could negatively impact financial inclusion, especially in rural and underserved areas where POS agents serve as the primary link between communities and formal banking services.
According to him, many POS operators are individuals or families running small-scale outlets to survive economic hardship, and additional regulatory costs could force many of them out of business.
“This sector has helped deepen financial inclusion in Nigeria,” Segun said. “If you introduce excessive regulation without clear legal backing, you risk reversing the gains that have been made.”
The association’s clarification comes amid recent announcements by the Corporate Affairs Commission indicating plans to clamp down on unregistered POS operators, with a deadline reportedly set for early 2026.
Segun said the association is seeking further engagement and clarification from the CAC to understand the legal basis for the directive and to ensure that policies affecting POS operators are fair, lawful, and economically sustainable.
He added that the association remains open to dialogue with regulators and stakeholders but insisted that any enforcement action must align with existing laws and recognise the unique role POS agents play in Nigeria’s financial ecosystem.
As discussions continue, the association urged POS operators nationwide to remain calm, continue complying with banking and identity verification requirements, and avoid misinformation that could disrupt their livelihoods.
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