The Corporate Affairs Commission, CAC, has begun plans to shutdown POS businesses operating without a license. This decision comes after the September 5 registration deadline expired.
The CAC, in a statement today Friday, said it would start taking drastic measures against POS operators that refused to register their businesses within the stipulated timeframe.
Also known as point of sale, POS business is very common in Nigeria. It has become one of the most popular ways through which people make withdrawals and deposits without visiting their banks. It is seen as a strategic way to reach the grassroots and un-bankable areas.
The CAC had initially set a July 7, 2024 deadline before extending it till September 5 following public outcry. The Commission had directed PoS agents of major fintechs in Nigeria including OPay, Palmpay, and Moniepoint, among others, to register in line with the legal requirements and directive of the Central Bank of Nigeria, CBN.
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The registration directive was announced following reports of frequent fraud incidents involving POS terminals and the plans to stop trading in cryptocurrency or any virtual currency by the CBN. A report by the Nigeria Inter-Bank Settlement System (NIBSS) Plc, indicates that POS terminals accounted for 26.37% of fraud incidents in 2023.
The CAC says the registration policy will help reduce fraud, safeguard the POS businesses and strengthen the economy.
However, POS operators under the aegis of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), have challenged the CAC’s registration directive in court even insisting that the mandatory registration order is illegal.
They argue that the registration requirements imposed by CAC is a clear violation of the Companies and Allied Matters Act, Laws of the Federation of Nigeria, 2004, which says that the commission has no authority over individuals not operating as a company.
