April 16, 2026 — SUNTV Global Channel
Tension is mounting across Nigeria’s informal financial sector as the Point-of-Sale (POS) Operators and Allied Informal Financial Workers Union of Nigeria (PAFWUN) has strongly rejected a controversial directive by the Central Bank of Nigeria (CBN) limiting operators to a single POS terminal.
The policy, which took effect on April 1, 2026, mandates that each POS operator can only use one terminal, a move regulators say is aimed at tightening oversight and reducing fraud. However, operators on the ground are warning that the directive could severely disrupt financial services, particularly in underserved communities.
In a statement issued by the union’s General Secretary, Salako Kayode, PAFWUN described the policy as “impractical and harmful,” stressing that multiple terminals are essential for smooth operations.
“For many operators, multiple terminals are not a luxury but a necessity,” the statement read. “They help us manage network failures, maintain consistent service, and meet growing customer demand. This restriction ignores the realities we face daily.”
The union emphasized that POS operators play a critical role in Nigeria’s financial ecosystem, especially in rural and semi-urban areas where traditional banking services remain limited. Services such as cash withdrawals, transfers, and bill payments largely depend on these operators.
PAFWUN further accused the apex bank of targeting the informal sector while neglecting deeper issues within the formal banking system.
“This policy reflects a pattern of decisions that disproportionately affect small operators — the backbone of Nigeria’s economy — without addressing systemic failures in the banking sector,” the union stated.
On fraud prevention, the union argued that existing identity verification systems are sufficient. According to them, enforcing strict compliance with Bank Verification Number (BVN) and National Identification Number (NIN) registration is enough to track and curb fraudulent activities.
“If the goal is proper regulation, ensuring that all operators are linked to BVN and NIN databases is a more effective solution,” the statement added.
The union is now calling on the CBN to immediately suspend the policy and engage stakeholders in dialogue to develop more practical and inclusive regulations.
As the standoff intensifies, industry watchers warn that if unresolved, the policy could disrupt daily financial transactions for millions of Nigerians who rely heavily on POS services.
SUNTV Global Channel will continue to monitor developments on this unfolding story.
