The Federal Government has announced plans to crack down on unregistered Point-of-Sale (PoS) operators across the country as part of efforts to tackle kidnapping and curb fraudulent practices associated with ransom payments.
During the formal launch of the Corporate Affairs Commission (CAC) registration of agents and merchants of financial technology (fintech) firms in Abuja, Registrar-General of CAC, Hussaini Magaji, emphasized the importance of mandatory registration for PoS operators. He stated that failure to comply with the registration directive by July 7, 2024, would result in punitive measures.
Magaji highlighted that the initiative, supported by relevant legal frameworks, including the Companies and Allied Matters Act (CAMA) 2020 and Central Bank of Nigeria guidelines on agent banking, aims to safeguard businesses and strengthen the economy amidst heightened foreign exchange volatility and financial challenges.
The move comes in response to rising incidents of fraud involving PoS terminals, with statistics from the Nigeria Inter-Bank Settlement System Plc indicating that PoS terminals accounted for 26.37% of fraud incidents in 2023.
Magaji assured stakeholders of the government’s commitment to providing a fully digitized service center to facilitate the registration process and address inquiries promptly. He reiterated that the registration deadline of July 7th would not be extended and warned of consequences for defaulters.
The registration initiative is expected to enhance crime prevention and facilitate law enforcement efforts by enabling authorities to track individuals involved in fraudulent activities, including ransom payments facilitated through PoS terminals.
In response to the directive, PoS agents expressed mixed reactions, with some expressing concerns about the potential impact on operators, particularly those in rural areas. Sarafa Fasasi, the National President of the Association of Mobile Money and Bank Agents in Nigeria, questioned the rationale behind the directive, highlighting the significant role played by sub-agents in financial inclusion efforts.
Despite the concerns raised, the government emphasized the importance of registration in promoting payment security, compliance with regulatory requirements, and access to financial services.
With the deadline fast approaching, stakeholders await further developments as the government intensifies efforts to regulate the PoS operator sector and enhance financial transparency and security nationwide.
