CBN Orders Dual Connectivity for PoS Transactions as CAC Moves to Clamp Down on Unregistered Operators

• The Central Bank of Nigeria has issued a one-month deadline for PoS operators to implement dual connectivity with NIBSS and UPSL, as the CAC announces plans to shut down unregistered PoS businesses nationwide from January 2026.

The Central Bank of Nigeria (CBN) has directed all acquirers, processors, and Payment Terminal Service Providers (PTSPs) to implement mandatory dual connectivity with the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL) for Point of Sale (PoS) transactions within one month.

The directive was contained in a memo dated December 11, 2025, and signed by the Director of the CBN’s Payments System Supervision Department, Rakiya Yusuf. The move is aimed at strengthening transaction reliability, reducing system failures, and improving oversight within the digital payments ecosystem.

Meanwhile, the Corporate Affairs Commission (CAC) has announced plans to commence a nationwide clampdown on unregistered PoS operators effective January 1, 2026, as part of efforts to curb money laundering and other financial crimes.

The CAC directed all PoS operators across the country to regularise their businesses before the deadline, noting that the rising number of unregistered operators violates the Companies and Allied Matters Act (CAMA) 2020 and the CBN’s Agent Banking Regulations.

Describing the trend as a “reckless practice” often enabled by some fintech companies, the commission warned that it poses serious risks to Nigeria’s financial system and the investments of citizens.

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According to the CAC, security agencies have been mandated to enforce full compliance nationwide from January 2026. “Unregistered PoS terminals will be seized or shut down by security officials. Fintechs enabling illegal operations will be placed on the watch list and reported to the CBN,” the commission stated.

The CAC reaffirmed its commitment to sanitising the financial services sector, stressing that the enforcement drive is part of broader efforts to promote transparency, strengthen regulatory compliance, and safeguard the economy.

“All operators are advised to regularise immediately, and compliance is mandatory,” the statement added.