The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has filed a lawsuit against the Corporate Affairs Commission (CAC) following a directive that required Point of Sale (PoS) operators to register their activities by September 5, 2024. The association is challenging the registration mandate, claiming it is unfair and could harm the businesses of small-scale operators.
Oluwasegun Elegbede, National General Secretary of AMMBAN, confirmed the legal action, arguing that the CAC’s directive violated the provisions of the Companies and Allied Matters Act (CAMA) of 2004. He emphasized that the commission has no authority over individuals who are not operating as companies, stating, “The order to enforce CAC registration for individual PoS agents is wrong and will be contested.”
Elegbede explained that the case is already in court, with a hearing scheduled for later in September. The association hopes the court will clarify whether individuals operating as PoS agents must register with CAC, which traditionally regulates companies, not individuals.
While the CAC has justified the registration as a way to combat fraud, Elegbede argued that fraud prevention is beyond the CAC’s jurisdiction. He highlighted that PoS operators are already traceable through their BVN, NIN, SIM cards, and banking details, which makes additional regulation unnecessary.
AMMBAN has expressed concerns about the financial burden of the registration, which costs around N35,000. Elegbede noted that many small-scale PoS agents cannot afford the fee, which could potentially cripple their operations. “These are young people trying to make a living. Imposing this cost could stifle the growth of many small businesses across the country,” he added.
Dr. Obioha Oti, the National Vice President of AMMBAN, echoed these sentiments, dismissing the CAC’s registration deadline as “null and void” and insisting that the commission cannot enforce the rule.
AMMBAN hopes the court will side with them, ensuring that the interests of small business owners are protected without unnecessary regulatory hurdles.
