The Corporate Affairs Commission (CAC) has issued a directive requiring Point of Sale (POS) operators in the country to register their agents, merchants, and individuals within a two-month deadline, expiring on July 7, 2024.
Hussaini Magaji, SAN, the Registrar-General/Chief Executive Officer of CAC, convened a meeting with fintech companies, commonly known as POS, on Monday in Abuja, where this agreement was reached.
Magaji emphasized that this measure aims to safeguard the businesses of fintech customers and strengthen the economy, as tweeted by the commission via its handle, @cacnigeria1.
This action aligns with Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020, as well as the 2013 Central Bank of Nigeria’s guidelines on agent banking.
Magaji clarified that the timeline for registration is not targeted at any specific groups or individuals but is genuinely aimed at protecting businesses.
“Several speakers from the fintech industry pledged to collaborate with the Commission to ensure the smooth implementation of the directive,” the tweet further read.
Representatives from fintech companies such as Opay, Momba, Palm Pay, Moniepoint, and Paystack were present at the meeting.
In addition to creating job opportunities, POS operators play a significant role in financial transactions nationwide.
This move to compel registration with CAC comes at a crucial time, as these companies have also been involved in fraudulent transactions. According to the Nigeria Inter-Bank Settlement System’s Annual Fraud Landscape report (January to December 2023), financial institutions lost about N17.67 billion to fraud in 2023, with Web and POS channels being the most exploited payment channels by fraudsters.