Point-of-Sale (PoS) operators have expressed concerns over recent directives from the Corporate Affairs Commission (CAC) and the Central Bank of Nigeria (CBN) ordering them to register their businesses, citing potential increases in operational costs that could lead to a hike in charges passed on to customers.
The CAC issued a two-month deadline, effective May 6, 2024, for PoS operators to register their agents, merchants, and individuals with the Commission, in adherence to legal requirements and directives from the CBN. This registration process entails fee payments, which operators fear will impact transactions and ultimately burden customers with additional charges.
Agents argue that the registration mandate threatens to erode their profits and deter prospective entrants into the business. They assert that the move, while aimed at safeguarding fintech operators’ businesses and strengthening the economy, introduces financial hurdles that may hinder market accessibility and growth.
The deadline set by the CAC for registration is July 7, 2024, leaving operators with a limited timeframe to comply with the regulatory requirement. This directive comes at a time when PoS agents have been advocating for charge hikes since 2022, citing increased operational expenses amidst cash scarcity challenges exacerbated by currency devaluation.
In response to previous calls for charge increases, the CBN issued directives to PoS operators to maintain the approved two per cent charge per transaction, emphasizing the need for regulatory adherence and consumer protection.
Meanwhile, reports indicate that the CAC has established a dedicated centre to facilitate bulk registration of PoS operators across Nigeria. The Registrar-General and CEO of the Commission, Hussaini Magaji, inaugurated the centre in the Federal Capital Territory on May 8, 2024, equipped with state-of-the-art facilities to streamline the registration process.
The CBN’s recent instructions to PoS operators underscore the regulatory push for compliance with legal requirements and industry standards. Following a meeting between fintech stakeholders and CAC officials in Abuja on May 7, 2024, the Registrar-General/Chief Executive Officer, Hussaini Magaji, emphasized the importance of the two-month registration timeline, reiterating its alignment with regulatory mandates and the CBN’s directives.
As PoS operators navigate these regulatory obligations, they face the challenge of balancing compliance with maintaining affordable services for customers while grappling with potential cost escalations in a dynamic market landscape.
