Kwara Association of Professional Point of Sale Agents (KAPPSA) have raised alarm over persistent gaps in Nigeria’s financial technology administration that leave POS operators vulnerable to fraud, liability, and systemic inefficiencies.
Speaking in Ilorin at a press briefing, KAPPSA, President, Mr. Opakunle Ridwan Ayinde, said the country’s growing dependence on POS operators for financial inclusion is not being matched by adequate regulatory support, a situation that threatens the stability of the cashless economy.
Mr Ayinde submitted that one of the gravest challenges facing POS agents is fraudulent transactions involving stolen debit cards.
He explained that while banks and ATMs rarely face scrutiny when cash is dispensed from stolen cards, POS agents are often treated as culprits.
According to him, in many instances, months after a transaction, agents are accused, arrested, or even jailed because they cannot produce the identity of a customer.
Mr. Ayinde described this as unjust and called on the Central Bank of Nigeria to mandate fintech companies and banks to equip POS terminals with cameras and introduce identity verification for transactions above ₦50,000.
The Association’s President said capturing customer images and National Identification Numbers would not only protect agents but also secure consumers and reduce the scale of electronic fraud in the system.
He said with POS transaction volumes rising by over 40 percent in the same year, operators have become a major target for fraudsters.
Mr Ayinde explained that noted that a transaction should be either successful or failed and urged the CBN to implement clearer dispute resolution protocols to protect both consumers and operators.
He maintained that In 2021 alone, the CBN received more than 200,000 complaints related to electronic payments, many of them linked to POS operations.
KAPPSA also used the briefing to highlight the need for financial empowerment for its members.
Mr. Ayinde posited that POS agents are critical players in Nigeria’s push toward financial inclusion, especially in underserved communities where banks are absent.
He appealed to government and financial institutions to provide soft loans under fair conditions and argued that supporting POS agents should be seen not as charity but as an investment in Nigeria’s economy, job creation, and poverty reduction.
The association also addressed what it called harmful practices that tarnish the sector, including the reported use of charms in financial dealings.
Mr. Ayinde said such practices undermine trust in the POS industry and must be rooted out through collaborative efforts by regulators, security agencies, and professional associations.
The Association cautioned that without stronger oversight, the trust deficit among consumers and operators could slow adoption of cashless payment systems, weakening the country’s financial inclusion drive.
Mr Ayinde pledged KAPPSA’s readiness to collaborate with regulators, banks, fintechs, and law enforcement in building a transparent and sustainable POS sector that works for all stakeholders.
