The government says that making Point-of-Sales (PoS) operators register nationwide will help reduce kidnappings and make it easier for police to catch those who receive ransom payments from kidnapped victims.
They also promise that security agencies will pursue PoS operators who don’t register with the Corporate Affairs Commission after July 7, 2024.
The Registrar-General of the Corporate Affairs Commission, Hussaini Magaji, announced this during the launch of the CAC registration of agents and merchants of fintechs in Abuja.
The event also introduced a 24-hour service center to assist applicants with inquiries and approvals.
The government, through the commission, has given PoS operators two months to register as corporate bodies with the commission, following legal requirements and Central Bank of Nigeria directives.
This action aims to protect businesses and boost the economy, supported by the Companies and Allied Matters Act, CAMA 2020, and the 2013 CBN guidelines on agent banking.
This move is also in response to the significant role PoS terminals play in fraud incidents, which accounted for 26.37% of fraud cases in 2023, according to a report by the Nigeria Inter-Bank Settlement System Plc.
The Central Bank of Nigeria had recently barred major fintech firms from accepting new customers and warned against trading in cryptocurrency on their apps.
Hussaini emphasized the government’s commitment to digitize the registration process and warned that the deadline would not be extended. Defaulters will face penalties after the deadline.
The registration aims to curb crime and fraudulent practices by enabling authorities to trace company ownership in case of criminal activities.
After the deadline, defaulters will be pursued by security agencies, as the timeline is intended to safeguard businesses rather than target specific groups.
Registration benefits include access to loans, compliance with regulatory requirements, and legal legitimacy for businesses operating in the country.
The government is enforcing a part of the Company and Allied Matters Act that requires Point-of-Sales (PoS) terminal holders to register their businesses. They’ve been working on this since December, and now they’ve extended the deadline to July, giving them six months to register.
Reaction from PoS operators:
Some PoS agents agree with the Central Bank of Nigeria (CBN)’s decision, but many think it will put more pressure on them, especially those in rural areas.
The National President of the Association of Mobile Money and Bank Agents in Nigeria, Sarafa Fasasi, said the directive was confusing. He pointed out that many agents, especially sub-agents, don’t have registered businesses and operate under super agent arrangements. He questioned why they’re being asked to register now.
Others like Ogunfowokan Temitope and Victor Olojo have different opinions. Temitope thinks it’s unfair because most agents don’t have much money and can’t afford the registration fees. Olojo supports the move, saying it will improve standardization and security in the industry.
Olojo believes that registering PoS agents will make it easier to trace and arrest them if they commit fraud. He thinks it’s a good thing for both the agents and the country.
Another agent, Sunday Samuel, thinks the move will standardize businesses, but it might be hard for agents in rural areas to understand the importance of registration.
Taiwo Shobowale, an agent in Ogun State, believes the new directive will affect operators because many of them don’t understand what it means to be registered with the Corporate Affairs Commission (CAC).
Many agents don’t consider their business as official, but offering financial services is important and the government wants to regulate it. The market is already crowded, and detecting fraud is difficult because of weak rules for verifying customers and lack of proper records.
Shobowale mentioned that the notice came suddenly, and the time given is short, considering the project should last the whole year. This rush could overwhelm the commission’s system and cause delays.
According to the Nigeria Inter-Bank Settlement System, there are over 1.9 million PoS terminals in use across the country.
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