CAC and EFCC Forge Alliance to Fortify POS Regulations and Combat Corporate Fraud
In a significant move to bolster Nigeria’s financial ecosystem, the Corporate Affairs Commission (CAC) has proposed a strategic partnership with the Economic and Financial Crimes Commission (EFCC) to address critical compliance gaps within the fintech sector. This collaboration aims to enhance regulatory oversight and curb the escalating incidence of corporate fraud facilitated through unregistered Point of Sale (POS) terminals.
The proposal was formally presented on Thursday, June 25, 2026, during a courtesy visit by the CAC Board Chairman, Senator Ibrahim M. Ida, CON, to the EFCC’s headquarters in Abuja, where he met with the Executive Chairman, Mr. Olanipekun Olukoyede.
Senator Ida articulated grave concerns regarding the low compliance rate among POS operators nationwide, estimating that a mere 20% of active operators are currently registered with the CAC. This widespread non-compliance directly contravenes the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria (CBN) Agent Banking Regulations, 2026, both of which mandate formal registration for any entity operating under a business name. The CAC Chairman underscored that unregistered POS terminals are increasingly becoming conduits for illicit financial flows, including the processing of ransom payments in kidnapping cases. To effectively counter these activities, Senator Ida outlined three key areas for immediate inter-agency cooperation: the systematic sharing of data and intelligence on suspicious corporate entities, joint public sensitization campaigns focused on financial crime risks, and specialised capacity-building training for operational staff on company law violations.
Responding to the CAC delegation, EFCC Executive Chairman Olanipekun Olukoyede acknowledged unregulated POS operations as a critical vulnerability within Nigeria’s domestic financial architecture. He revealed that corporate entities are overwhelmingly the vehicles for public corruption and financial crimes in the country, with over 80% of such offenses executed via registered companies and procurement fraud.
Mr. Olukoyede further disclosed that the EFCC has made substantial progress in investigating a batch of 200 companies recently referred by the CAC, with ongoing inquiries yielding critical findings. To formalise and institutionalise this expanded partnership, the EFCC Chairman called for an immediate review and update of the existing Memorandum of Understanding (MoU) between both commissions. This revision, he stated, is essential to ensure that regulatory frameworks are robust and adequately reflect current financial intelligence and counter-fraud requirements, thereby providing enhanced protection for businesses and investors.
