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The EFCC and the Corporate Affairs Commission are joining forces against unregistered PoS operators, in a move aimed at closing a major gap in Nigeria’s booming agent-banking sector.
The Gist
- EFCC and CAC target unregistered PoS operators
- Only about 20% of operators registered
- Crackdown aims to curb fraud, laundering
The two agencies announced the collaboration in Abuja during a courtesy visit by the CAC to the EFCC. They said far too many Point of Sale operators run outside the law.
Why unregistered PoS operators worry regulators
Officials say only about 20 percent of PoS operators are registered with the CAC. That leaves roughly four in five working without proper corporate records.
Running an agent business without registration breaches the Companies and Allied Matters Act and the Central Bank’s agent-banking rules. It also makes operators hard to trace when fraud occurs.
The CAC said it had referred 200 companies to the EFCC for investigation. The agencies plan to build a shared database that law enforcement can use to track suspicious activity.
The money-laundering link
Investigators say criminals increasingly move illicit cash through unregistered terminals. Ransom payments from kidnappings, they warn, have been routed through PoS channels that leave little trace.
EFCC Chairman Ola Olukoyede framed unregulated PoS as a threat to the wider financial system. He stressed that proper registration would help separate honest agents from fraudsters.
“More than 80 per cent of financial crimes in Nigeria are perpetrated through procurement fraud,” Olukoyede said, underlining the scale of the broader problem the commission faces.
A fast-growing industry
PoS agents have become a daily lifeline for millions of Nigerians, especially where bank branches and cash are scarce. The sector has spread quickly into markets, streets and rural towns.
That rapid growth has outpaced oversight. Without solid records, regulators struggle to know who runs a terminal, where, and on whose behalf.
What operators should expect
The agencies want operators to formalise their businesses and keep clean records. Compliance, they argue, protects customers and shields honest agents from being blamed for crimes they did not commit.
No firm registration deadline was announced. But the message was clear: the era of running a PoS business in the shadows is ending.
How agents can stay compliant
Industry groups say most PoS agents are honest traders who simply never registered. For them, the path is straightforward: incorporate the business and keep proper records.
Operators are also expected to follow the Central Bank’s agent-banking guidelines and report unusual transactions. Doing so, regulators say, shields agents from being blamed for crimes routed through their terminals.
Consumer advocates want the crackdown paired with public education. Many customers do not know whether the agent they use is registered, or what protection they have if something goes wrong.
Analysts say the real test is enforcement without choking a service millions rely on. A heavy hand could push agents out of business, while a soft one leaves the loopholes open.
Why the timing matters
The push comes as cashless policy and naira pressures have made PoS terminals central to daily life. Long bank queues and cash shortages pushed millions toward agents.
That dependence gives the sector outsized influence over how money moves. Regulators say bringing it fully into the formal system is now a national priority, not an optional reform.
Bankers add that clean data on agents would help extend credit and services to underserved areas. Formalisation, they argue, can open doors rather than just close loopholes.
For everyday agents, the practical step is simple — register with the CAC, follow CBN guidelines and report suspicious transactions. For regulators, taming unregistered PoS operators is now central to fighting financial crime.
Source: EFCC
