Nigerian PoS Operators Push Back as Fraud Cases Surge, CBN Tightens Rules

Point of Sale (PoS) operators across Nigeria are defending themselves against growing allegations of involvement in financial fraud, insisting that the majority are honest individuals trying to earn a living.

Their response comes after the Central Bank of Nigeria (CBN) announced new regulations requiring all payment service providers to adopt the ISO 20022 messaging standard and geo-tag their devices by October 31, 2025.

Rising Transactions, Rising Fraud

CBN data shows that the value of PoS transactions more than doubled in just one year — from ₦110.35 trillion in 2023 to over ₦223 trillion in 2024. This surge has been linked to the decline of ATM usage and the rapid growth of agency banking across Nigeria.

However, along with this growth came a sharp increase in fraud. According to figures from the Financial Institutions Training Centre (FITC), PoS-related fraud rose by 31.12% in the first quarter of 2024, with 3,518 recorded cases, up from 2,683 cases in the last quarter of 2023. PoS fraud now accounts for more than 30% of all financial fraud in the country, making it the leading channel for fraud cases.

Operators Defend Themselves

Many operators have denied being part of the problem.

Abu Mukhtar, a PoS agent in Abuja, stated that while some operators may misuse the system, most are not criminals. “I have heard many times that people use PoS to launder stolen funds, but I have never allowed that on mine. I am just trying to survive,” he said.
Chioma Eze, another operator, said PoS agents are often unfairly accused of hoarding cash. She explained that agents usually buy cash from alternative sources like fuel stations, not directly from banks.
Others admitted they were unfamiliar with the CBN’s new geo-tagging requirement and called on the apex bank to conduct more awareness campaigns to help operators understand compliance steps.

Association and Security Agencies Weigh In

The President of the Kwara State chapter of the Association of Professional PoS Agents (KAPPSA), Mr. Ridwan Opakunle, confirmed that fraud is a real challenge in the industry. He stressed that registered members of KAPPSA are traceable and therefore unlikely to be involved in fraud, while unregistered agents are largely responsible for the problem.

Some operators have been accused of tampering with PoS machines to steal customer card information, further raising public concern.

Meanwhile, the Corporate Affairs Commission (CAC) has given PoS agents, super agents, and sole agents until September 5, 2024, to register their businesses. Those who fail to comply risk having their accounts flagged as illegal operations.

Security agencies have also pledged to intensify enforcement against non-compliant PoS operators once the deadline expires.