The National Association of Financial Inclusion Agents in Nigeria (NAFIAN) has declared its intention to legally challenge the Corporate Affairs Commission's (CAC) directive that mandates the registration of all point-of-sale (PoS) operators. The association has labeled the move as an unnecessary overreach of authority.
NAFIAN's Legal Stand Against CAC Directive
In an exclusive interview with Legit.ng, the National President of NAFIAN, Fasasi Sarafadeen, argued that PoS agents are already subject to stringent regulations. He pointed out that agents are registered with their partner banks and their devices are registered with the Nigerian Interbank Settlement System (NIBSS). Sarafadeen questioned the rationale behind the CAC's demand for an additional layer of registration.
"POS agents are already heavily regulated. Why is CAC seeking multiple registrations, and is it now a law enforcement agency?" Sarafadeen stated emphatically. He clarified that under the existing Central Bank of Nigeria (CBN) Agent Banking guidelines, only enterprise agents—not individual operators working under their personal names—are required to register with the CAC.
The Impending January 2026 Deadline and Its Implications
The Corporate Affairs Commission had earlier issued a public notice on 6 December, setting 1 January 2026 as the effective deadline for compliance. According to the notice, no PoS operator would be permitted to conduct business without CAC registration after this date.
The commission warned that security agencies would be mobilized for nationwide enforcement. Unregistered PoS terminals face seizure, and fintech companies enabling illegal operations would be reported to the CBN and placed on watchlists. The CAC justified its action by citing the risks posed by unregistered operators to Nigeria's financial system and public investments, highlighting violations of the Companies and Allied Matters Act (CAMA) 2020 and CBN regulations.
NAFIAN Calls for Directive Withdrawal, Threatens Legal Action
Sarafadeen, who also serves as the MD/CEO of Ecosystem Ltd, advised the CAC to withdraw its directive. He suggested the commission should instead focus on improving its own inefficient registration portal and addressing the high rate of business failures in Nigeria.
"CAC move is just revenue mobilisation as against the acclaimed security objective and such move is detrimental to financial inclusion drive in Nigeria," he alleged. The NAFIAN president issued a firm ultimatum: "We are urging CAC to withdraw the issued threat or we go back to the court to enforce individual agent fundamental human right."
The stage is now set for a significant legal confrontation between financial inclusion agents and a key government regulatory body, with the outcome poised to impact millions of small-scale operators and the broader landscape of digital financial services across Nigeria.
