Nigeria targets unregistered POS operators in crackdown on financial crime risks

Nigeria’s Corporate Affairs Commission (CAC) is seeking closer collaboration with the Economic and Financial Crimes Commission (EFCC) to tackle rising financial crime risks linked to unregistered businesses, with Point of Sale (POS) operators under increased scrutiny nationwide.

During a courtesy visit to the EFCC headquarters, CAC Board Chairman Senator Ibrahim M. Ida urged stronger inter-agency cooperation to improve oversight of Nigeria’s financial system and curb emerging economic crimes.

Ida expressed concern that only about 20% of POS operators in Nigeria are currently registered with the CAC, despite clear legal requirements under the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria’s 2026 Agent Banking Regulations, which require businesses operating under a business name to be duly registered.

The CAC chairman warned that intelligence reports indicate unregistered POS terminals are sometimes used to process proceeds of crime, including ransom payments linked to kidnapping cases. He said this presents significant risks to Nigeria’s financial system and regulatory enforcement framework.

To address the issue, the CAC proposed enhanced cooperation with the EFCC in three key areas: improved intelligence sharing on suspicious entities, joint public awareness campaigns on corporate governance and financial crime risks, and capacity-building programmes to strengthen regulatory response to emerging threats.

Responding, EFCC Chairman Olanipekun Olukoyede said more than 80% of financial crimes in Nigeria are linked to procurement fraud and misuse of registered companies. He added that investigations into 200 companies previously referred by the CAC had produced significant findings.

Olukoyede acknowledged the challenges of regulating Nigeria’s rapidly expanding POS sector and stressed the need for urgent reforms to safeguard the integrity of the financial system.

The discussions highlight growing regulatory concern over the misuse of financial service channels, particularly within Nigeria’s fast-expanding POS ecosystem. As digital payments continue to grow across the country, authorities are intensifying efforts to improve compliance, strengthen oversight and reduce vulnerabilities that could be exploited for financial crimes.