POS Operators do not need CAC registration to operate legally, says AMBAN
POS Operators do not need CAC registration to operate legally, says AMBAN
The Association of Mobile Money & Bank Agents (AMBAN) in Nigeria has clarified that its members are not required to register with the Corporate Affairs Commission (CAC) to operate legally.
In an interview with DAILY POST, the Association’s General Secretary, Elegede Segun, said operators of Point of Sale (POS) terminals can function as “non-entities” under Nigerian law and dismissed claims of illegal POS operators.
“But what is baffling is the issue with the CAC, and we are waiting for them to give us clarity. Let’s know, why would you enforce registration of businesses on POS operators?
“Is it the same with other businesses? For people who sell wood, for people who grind paper, must they register before they can function as a business in Nigeria? Because CAMA (Company and Allied Matters Act 2020) clearly states that you can exist either as an individual or as a non-entity.
“So, you cannot force anyone. You can still do business with your own partner in Nigeria. That is what the Nigerian law has stipulated.
“That’s not me. So, why is CAC saying that everybody doing POS must be registered? Don’t forget, I heard someone say, or maybe one or two people from the CAC said, that there are illegal POS operators. There’s nothing like illegal POS operators out there.
“Because a POS operator is not like a phone that you buy anywhere. Before a POS operator can be functional in Nigeria today, they must have gotten what we call a terminal ID from NIBSS,” Segun explained.
His comments come in response to CAC’s December directive setting January 2026 as the deadline to clamp down on unregistered POS operators. The commission also warned it would sanction fintech companies that facilitate the operations of unregistered POS operators.
Segun emphasized that existing safeguards—including Call Terminal Identification with the Nigeria Inter-Bank Settlement System Plc (NIBSS), bank accounts, Bank Verification Numbers, and National Identity Numbers—already provide adequate security for POS operators.
“But what is baffling is the issue with the CAC, and we are waiting for them to give us clarity,” he added.
