The Corporate Affairs Commission (CAC) and the Economic and Financial Crimes Commission (EFCC) have strengthened their partnership to enforce the registration of Point-of-Sale (PoS) operators nationwide amid growing concerns that unregistered operators could be exploited for financial crimes, including money laundering and ransom payments.
The renewed collaboration was announced during a courtesy visit by Senator Hussaini Ibrahim Idah, CAC Board Chairman, to Ola Olukoyede, the Chairman of the Economic and Financial Crimes Commission, at the commission’s headquarters in Abuja.
The two agencies expressed concern over the low level of compliance within the PoS sector, warning that inadequate regulation poses significant risks to Nigeria’s financial system and national security.
Speaking during the meeting, Idah revealed that only about 20 per cent of PoS operators across the country have registered their businesses with the CAC despite existing regulatory requirements.
According to him, the situation contravenes the provisions of the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria’s Agent Banking Regulations, which require businesses operating under a business name to be formally registered.
“Presently, only about 20 per cent of PoS operators are registered with CAC, a situation inconsistent with the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria Agent Banking Regulations,” Idah stated.
He noted that the commission is seeking EFCC’s support to improve compliance nationwide and build a comprehensive database of PoS operators that can be accessed by law enforcement agencies.
The CAC chairman warned that intelligence reports and ongoing investigations suggest that PoS terminals are increasingly being used as channels for illicit financial transactions.
According to him, criminal proceeds, including ransom payments linked to kidnapping activities, are sometimes routed through PoS platforms, making stronger oversight and regulation imperative.
“We seek closer cooperation in developing a reliable database of PoS operators for use by the EFCC and other law enforcement agencies,” Idah said.
He explained that a robust database would enhance investigations, strengthen transaction monitoring, and improve the ability of security agencies to track suspicious financial activities.
Idah emphasised that the mandates of both institutions are closely linked, particularly in the fight against economic and financial crimes.
While the CAC is responsible for registering and regulating companies and business entities in Nigeria, the EFCC investigates and prosecutes financial crimes. He noted that fraudulent actors often exploit corporate structures to perpetrate illegal activities.
“When companies are misused for fraud or money laundering, the mandates of both institutions are directly affected. Neither agency can effectively win the war against economic and financial crimes if we work in isolation,” he said.
He identified intelligence sharing, public awareness campaigns, staff training, and joint enforcement initiatives as key areas of future collaboration.
Responding, Olukoyede described the proliferation of unregulated PoS operators as a growing challenge within Nigeria’s financial ecosystem.
“If you do not regulate the activities of such key players, you will be having major problems and challenges within your financial ecosystem,” he warned.
The EFCC chairman reaffirmed the commission’s commitment to supporting CAC’s compliance drive and tackling financial crimes linked to unregistered operators.
He also described the CAC as a strategic institution for economic development, noting that it serves as a critical entry point for investors seeking to establish businesses in Nigeria.
Olukoyede disclosed that the EFCC has established a dedicated desk to handle matters relating to the CAC and revealed that ongoing investigations involving approximately 200 companies have already produced significant outcomes.
