LAGOS/ABUJA, Nigeria — Following the expiration of the December 31 deadline, joint task forces comprising the CAC and security agencies have begun identifying and shutting down non-compliant Point-of-Sale (PoS) points across major city hubs.
The “New Rules of Operation” (Effective Jan 1, 2026)
The regulation introduces a two-pronged attack on informal financial services:
1. Physical Enforcement & Seizures
- Terminal Seizure: Any PoS terminal found being operated without a visible CAC Business Registration Certificate or a valid digital registration number is now subject to immediate seizure.
- Fintech Watchlist: Major fintechs (Opay, Moniepoint, PalmPay, etc.) that continue to provide network services to unregistered “individual” agents are being placed on a regulatory watchlist and reported to the CBN for heavy sanctions.
2. The New Tax ID & EFS Mandate
- Mandatory TIN Validation: Financial institutions are now prohibited from onboarding any agent—business or individual—without a validated Tax Identification Number (TIN).
- Electronic Fiscal System (EFS): All PoS transactions must now be reported through the centralized EFS. This allows the government to track business volumes in real-time for tax purposes.
- Severe Penalties: * N200,000 flat administrative fine for failing to use the EFS.
- 100% Penalty: Defaulters must pay double the calculated tax liability.
- Interest: Accumulated interest at the current CBN Monetary Policy Rate (MPR).
Why the Crackdown?
Regulators point to the staggering N10.51 trillion in transactions processed by PoS agents in early 2025 as evidence of a “shadow economy” that has grown too large to remain unregulated.
- Fraud Prevention: Unregistered terminals were frequently used for “cloned machine” scams and anonymous cash-outs for criminal activities.
- National Security: The move aligns with the 10-metre radius rule, which requires PoS terminals to operate only within a fixed distance of their registered business address to prevent mobile illicit activities.
Consumer Warning
The CAC has advised the public to only patronize PoS operators who display their CAC registration details. Transactions made through unregistered terminals may no longer be traceable in the event of a dispute or failed refund.
