Given the expiration of a September 5 deadline for the registration of Point of Sale (POS) businesses, the Corporate Affairs Commission (CAC) has initiated steps to enforce the process.
The CAC expressed concern over the low compliance rate, suggesting that unregistered operators might be involved in “unwholesome activities”.
Stated the CAC stated in a public notice: “The Commission notes inadequate compliance with the directive for formalisation when viewed from the background of the large number of POS operators in the country. Those who have taken steps to formalise in line with the Commission’s directive are commended for their positive attitudes”.
The CAC warned that it was collaborating with law enforcement agencies to implement a comprehensive enforcement framework, which could include shutting down businesses and imposing other legal penalties.
Stated the CAC: “Recalcitrant operators have refused to adhere to the advice for formalisation due possibly, to engagements in unwholesome activities or for some reasons best known to them.
“We are to make it clear that the Commission is working with law enforcement agencies and other relevant stakeholders to deploy a comprehensive enforcement and sanction framework that may include not only a possible shutdown but other severe legal consequences”.
The move follows an initial deadline of July 7, which was later extended by 60 days. The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has challenged the CAC’s registration directive in court, arguing that it violates the Companies and Allied Matters Act (CAMA).
Stated Oluwasegun Elegbede, AMMBAN’s National General Secretary: “The court will have to intervene in the interpretation of the quoted section of the CAMA if individuals operating as a sub-agent (likened to a bank branch) must register with CAC”.
The Central Bank of Nigeria’s (CBN) attempts to restrict cryptocurrency trading and the growing number of fraud occurrences utilising POS terminals are the reasons behind the CAC’s drive for registration.
A report by the Nigeria Inter-Bank Settlement System (NIBSS), revealed that POS terminals accounted for 26.37% of fraud incidents in 2023.
Citing Section 863 (1) of CAMA 2020 and the 2013 CBN recommendations on agent banking, Hussaini Magaji, CAC Registrar-General, supported the registration requirement. He made it clear that the registration’s dual goals of bolstering the economy and protecting companies and consumers were the same.
