POS Operators Can Legally Operate Without CAC Registration — Mobile Money Agents Clarify
The Association of Mobile Money and Bank Agents of Nigeria (aka PoS Operators) has clarified that its members are legally permitted to operate without registering with the Corporate Affairs Commission (CAC).
Speaking on the matter, the General Secretary of the association, Elegede Segun, explained that Point of Sale (POS) operators are allowed under Nigerian law to function as individuals or non-entities. PulseNets learnt this during an interview in which he dismissed growing concerns around the legality of POS businesses.
According to him, the claim that there are “illegal POS operators” in Nigeria is misleading. He stressed that existing regulatory requirements already provide sufficient oversight and security within the sector.
Segun told PulseNets that POS businesses are properly captured within the financial system through mandatory documentation, including Call Terminal Identification with the Nigeria Inter-Bank Settlement System (NIBSS), bank accounts, Bank Verification Numbers (BVN), and National Identity Numbers (NIN).
“What remains baffling to us is the fixation on CAC registration. We are still waiting for clarity from them. Why should POS operators be compelled to register as businesses?” he said.
He questioned whether similar standards were being applied to other informal and micro-scale businesses across the country.
“Do people who sell firewood or operate grinding machines register with CAC before they can function? The Companies and Allied Matters Act (CAMA) 2020 is clear—you can exist as an individual or as a non-entity,” Segun stated.
He further argued that Nigerian law does not mandate compulsory business registration for individuals engaging in lawful commercial activities.
“You cannot force anyone. Two individuals can still do business together in Nigeria without registering a company. That is what the law stipulates,” he added.
Segun maintained that the narrative around “illegal POS operators” lacks legal backing.
“Why is CAC insisting that everyone operating POS must be registered? I have heard claims from some CAC officials suggesting that there are illegal POS operators. There is nothing like illegal POS operators,” he said.
He explained that the onboarding process for POS operators is already tightly regulated.
“A POS terminal is not something you buy and start using freely. Before it becomes functional, the operator must obtain a terminal ID from NIBSS. That alone ensures traceability and accountability,” Segun told PulseNets.
His remarks come against the backdrop of a recent directive by the Corporate Affairs Commission. In December, CAC announced January 2026 as the deadline to begin enforcement actions against unregistered POS operators across Nigeria.
Also Read: PoS operators get July 7 deadline for CAC registration
The commission also warned that fintech companies enabling unregistered POS operators risk sanctions, a move that has since sparked debate within the mobile money and agency banking ecosystem.
