CAC launches registration point for PoS operators, security agents to go after unregistered operators from July

The Corporate Affairs Commission (CAC) has formally commenced an enrollment exercise for Point of Sale (PoS) agents and operators in Nigeria. The launch event also coincided with the opening of a 24-hour service centre that will help PoS operators get prompt responses and resolutions on issues surrounding their registration.

Speaking at the event, Registrar-General of the CAC, Hussaini Magaji mentioned that the centre has the essential features to meet the users’ demands and guarantee that the commission meets its objective.

“We have launched a 24-hour service centre to accommodate enquiries from Point of Sales operators and agents who may want to register as directed by the new policy. The secretariat is filled with staff members saddled to approve requests. We have equipped the secretariat with the necessary facilities”, he explained.

Mr Magaji also told attendees at the event that the country’s security agencies would go after PoS operators who fail to comply with the directive to register with the Corporate Affairs Commission beginning from July 7. “The deadline remains 60 days and it will end July 7th. After the deadline, we would go after defaulters, If you have been identified as a criminal, security agents will go after you”, the CAC boss explained.

The CAC head also indicated at the event that the agency does not intend to target specific groups or individual businesses but genuinely aimed at safeguarding the citizens.

“Of course, the mandatory registration will reduce crime and fraudulent practices, the commission is hosting data and if any crime is committed anywhere, the security agencies would have to reach us to know the people behind the company and the fraudsters. But if they are not registered, we can’t do anything and that’s the essence of the registration”, he added.

According to him, operators should consider the benefits of the exercise beyond exposure to taxation. He explained that other benefits include access to loans, legality, and compliance with regulatory requirements.

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CAC vs PoS operators: The government’s quest for control

PoS terminals accounted for 26.37 per cent of fraud incidents in 2023, according to a fraud report by the Nigeria Inter-Bank Settlement System Plc.

Last Monday, the Nigerian government through the CAC issued a two-month registration deadline for PoS operators to register as corporate bodies with the commission in line with the legal requirements and directives of the Central Bank of Nigeria.

The announcement relies on Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020 and the 2013 CBN guidelines on agent banking which aim to safeguard businesses and strengthen the economy.

Hussaini Magaji also explained at the launch event that the registration process aligns with both legal requirements and the directives of the CBN mandating individual, merchant or business entities to be captured in its database.

“The law has stated that for any person to carry out business activity in the country, your business must be legitimate and for your business to be legitimate you must register, either you are doing your business as an individual or as an agent, you must register with us”, he said.

Recall that a local media platform reported that the CBN stopped major fintech firms like Kuda, Opay, PalmPay and Moniepoint from onboarding new customers. The move follows an ongoing audit of the Know-Your-Customer process of fintech companies operating in the country. Some of these have been under recent scrutiny over concerns about money laundering activities and terrorism financing.

Another media platform reported that the CBN summoned heads of some of the fintech companies to Abuja to discuss some of the identified issues. Following that, some fintech firms issued warnings to customers against cryptocurrency trading using their apps and threatened to block any accounts that engage in the same.

Many industry experts agree with the CBN on the actions. But, some others believe that operators in rural communities will find it difficult to comply.