The Corporate Affairs Commission (CAC) in Nigeria has imposed a mandatory registration requirement for all Point of Sale (PoS) operators, which includes their agents, merchants, and individual operators, to be completed by July 7, 2024. This decision, announced by the Registrar-General/Chief Executive Officer of CAC, Hussaini Magaji, SAN, came after a meeting with representatives from various fintech companies in Abuja.
According to Magaji, this regulatory measure is aimed at protecting the interests of fintech customers and bolstering the economy. He cited the legal backing for this directive as stemming from “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.”
The announcement, shared via the CAC’s social media handle @cacnigeria1, clarified that the set deadline was not meant to target any specific groups or individuals but was established to enhance business security. The commission reported widespread commitment among fintech industry leaders to support the successful enforcement of the registration mandate, although they highlighted the need for adequate public sensitization to achieve the desired compliance.
During the meeting, Tokoni Peter, Special Adviser to President Bola Tinubu on ICT Development and Innovation, assured attendees of the government’s dedication to facilitating a smooth registration process, aligning with the Renewed Hope Initiative of the current administration.
The session saw participation from major fintech entities such as Opay, Momba, Palm Pay, Moniepoint, and Paystack, signifying a significant collaboration between the private sector and regulatory bodies.
This regulatory move is particularly pertinent as the role of PoS operations in Nigeria extends beyond mere financial transactions; they are a critical component of the country’s job market. Moreover, the urgency of this regulation is underscored by recent data from the Nigeria Inter-Bank Settlement System, which reported significant financial losses due to fraud, amounting to N17.67 billion in 2023. Notably, the Web and PoS were identified as the most vulnerable channels, with reported reductions in web and ATM fraud incidents in the same period.
By mandating registration, the CAC aims to curb the misuse of these platforms and enhance the overall security and reliability of financial transactions across the country.