The Corporate Affairs Commission (CAC) has issued a directive mandating Point of Sale (PoS) operators across the country to register their agents, merchants, and individuals within a two-month timeframe, with the deadline set for July 7, 2024.
The Registrar-General/Chief Executive Officer of CAC, Hussaini Magaji, SAN, convened a meeting with various fintech companies, commonly known as PoS operators, in Abuja on Monday, where this decision was mutually agreed upon.
Magaji emphasized that this initiative is aimed at safeguarding the interests of fintech customers and bolstering the economy, in line with Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020 and the 2013 Central Bank of Nigeria’s guidelines on agent banking.
In a statement released via its official Twitter handle, @cacnigeria1, Magaji clarified that the registration deadline is not targeted at specific groups or individuals but is a proactive measure to protect businesses.
“Several speakers from the fintech industry pledged to collaborate with the Commission to ensure hitch-free implementation of the directive,” the tweet further stated. “However, they underscored the importance of thorough sensitization to ensure the effectiveness of the exercise.”
Tokoni Peter, the Special Adviser to President Bola Tinubu on ICT Development and Innovation, also voiced commitment to facilitating the registration process in alignment with the Renewed Hope Initiative of the current administration.
Representatives from prominent fintech companies such as Opay, Momba, Palm Pay, Moniepoint, and Paystack were present at the meeting.
Aside from being vital for job creation, PoS operators play a significant role in facilitating financial transactions nationwide. However, concerns over fraudulent activities within the sector have prompted regulatory action.
The move to compel registration with the CAC comes at a crucial time, as fintech companies have been implicated in fraudulent transactions. According to the Nigeria Inter-Bank Settlement System’s Annual Fraud Landscape report for January to December 2023, financial institutions suffered losses of approximately N17.67 billion to fraud in 2023, with Web and PoS channels being the most exploited payment channels.
The report highlighted a 38% decrease in Web Fraud and a 64% reduction in ATM fraud from 2022 to 2023, underscoring the importance of regulatory oversight to curb illicit activities in the financial sector.
