Nigeria Fraud Prevention Measures: CBN Mandates PoS Operators to Register with CAC by July 7

In a move to enhance financial transparency, the Central Bank of Nigeria (CBN) has mandated Point-of-Sale (PoS) operators to register their businesses with the Corporate Affairs Commission (CAC) within two months. This measure aims to reduce fraud and promote a more regulated financial sector in Nigeria

The Central Bank of Nigeria (CBN) has issued a directive requiring all Point-of-Sale (PoS) operators in the country to register their businesses with the Corporate Affairs Commission (CAC) within the next two months1. This move comes in response to the rising incidents of fraud involving PoS terminals, which accounted for 26.37% of fraud cases in 2023 according to a report by the Nigeria Inter-Bank Settlement System Plc (NIBSS) 12. The CBN aims to enhance transparency and reduce fraudulent activities within the financial sector.

The directive was announced following a meeting between Fintech companies and the Registrar-General/Chief Executive Officer of CAC, Hussaini Magaji (SAN), in Abuja on May 7. Magaji emphasized that the registration requirement is not targeted at any specific group or individual but rather aims to ensure compliance with regulatory standards 1.

During the meeting, the CAC and Fintech companies, commonly referred to as PoS operators, agreed to a two-month timeline for registering their agents, merchants, and individuals with the CAC. This collaborative effort seeks to bring PoS operators into the formal economy and enhance the overall stability of Nigeria’s financial system. By promoting registration, the authorities aim to create a more inclusive and regulated financial sector