Nigeria’s Corporate Affairs Commission (CAC) issued a six-week ultimatum on April 25, 2025, ordering all unregistered businesses, particularly Point of Sale (PoS) operators, to register by June 6 or face sanctions, including fines of N50,000 and potential shutdown.
The directive, announced by CAC Registrar-General Hussaini Magaji, targets over 1.5 million informal businesses to integrate them into the formal economy and enhance tax compliance, following the Central Bank of Nigeria’s (CBN) tightened banking regulations. The move aims to curb fraud and money laundering in the cash-heavy PoS sector, which processed N12 trillion in transactions in 2024, per CBN data.
The CAC’s action aligns with the Companies and Allied Matters Act (CAMA) 2020, requiring all businesses, including sole proprietorships, to register. PoS operators, numbering 1.2 million per the National Bureau of Statistics, have been under scrutiny since a 2023 CBN directive banned cash withdrawals via PoS terminals to reduce cash-based crimes. The CAC has simplified registration, offering online portals and reducing fees to N5,000 for small businesses, with 500,000 businesses registered in 2024. Non-compliance risks bank account freezes, as the CBN has mandated banks to block unregistered operators’ accounts by July 1.
The ultimatum follows a surge in PoS-related fraud, with 3,000 cases reported in 2024, costing N2 billion, per the Economic and Financial Crimes Commission. Magaji emphasized that registration would improve access to credit and government grants, citing a N50 billion SME fund launched in March 2025. However, the Association of Mobile Money and Bank Agents in Nigeria warned that high compliance costs could exclude rural operators, with 60% of PoS agents earning less than N100,000 monthly. The CAC plans to deploy 200 mobile registration units to rural areas to ease access.
The directive reflects Nigeria’s push for financial inclusion, with 45% of adults unbanked, per World Bank data. The CAC aims to register 2 million businesses by 2026, boosting GDP contributions from the informal sector, which accounts for 60% of Nigeria’s economy, per IMF estimates. Compliance challenges persist, with power outages and digital literacy gaps hindering online registration. The ultimatum signals a broader effort to formalize Nigeria’s economy, but its success depends on addressing logistical barriers and supporting small operators through the transition.