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AMMBAN Challenges CAC: “Why POS Operators Don’t Need Mandatory Business Registration



AMMBAN Challenges CAC: “Why POS Operators Don’t Need Mandatory Business Registration”


By Infocity News Desk

January 6, 2026


As the deadline set by the Corporate Affairs Commission (CAC) for the mandatory registration of Point of Sale (POS) operators expires this January, the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN) has come out strongly against the directive, labeling it unnecessary and legally questionable.

The Argument for Non-Entity Status

In an exclusive interview, AMMBAN General Secretary, Elegede Segun, argued that under the Companies and Allied Matters Act (CAMA) 2020, individuals have the legal right to conduct business as non-entities or individuals without formal incorporation.

Segun questioned why POS operators are being singled out for enforcement when other small-scale entrepreneurs, such as wood sellers or local millers, are not subjected to the same rigid demands.


"CAMA clearly states that you can exist either as an individual or as a non-entity," Segun stated. "You cannot force anyone. The Nigerian law allows you to do business with your partner. Why is the CAC saying everyone doing POS must be registered?"

Debunking the “Illegal Operator” Myth

Addressing concerns raised by the CAC regarding "illegal" POS operators, AMMBAN clarified that the nature of the industry makes it impossible to operate outside the financial regulatory net.

Unlike mobile phones that can be purchased anywhere, a POS terminal requires a specific Terminal Identification (TID) issued by the Nigeria Inter-Bank Settlement System (NIBSS). 

Segun emphasized that every functional operator is already linked to:


 * A Bank Account

 * Bank Verification Number (BVN)

 * National Identity Number (NIN)

 * A NIBSS-issued Terminal ID

According to the association, these layers of identification provide more than enough security and oversight, making the CAC’s demand for additional business registration redundant.


The CAC Deadline and Potential Sanctions

The tension follows a December announcement by the CAC, which set January 2026 as the final deadline for all POS agents to register their businesses or face a nationwide crackdown. 

The Commission has also threatened to sanction fintech companies (such as OPay, Moniepoint, and Palmpay) that continue to provide services to unregistered operators.

As the deadline passes, the industry remains in a state of uncertainty. AMMBAN is currently seeking further clarity from the Commission, maintaining that the enforcement contradicts existing business laws in Nigeria.

Infocity News will continue to monitor this story as it develops.





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