PoS Operators Sue FG as Registration Deadline Ends, CAC Moves to Shut Down Terminals

• Point of Sale (PoS) operators have sued the Nigerian government over the registration mandate of the Corporate Affairs Commission (CAC)
• The operators disclosed that the directive by the commission violates the CAC Act of 2004
• The general secretary of the AMMBA, Oluwaseun Elegbede, disclosed that the agents are a violation of the law

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The deadline for Point of Sale (PoS) operators to register their businesses with the Corporate Affairs Commission elapsed on Thursday, September 5, 2024.

Under the aegis of Mobile Money and Bank Agents in Nigeria, the operators challenged the directive in court.

FG moves to curb fraud in the system

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CAC moves to shutdown POS operators as deadline ends

The Nigerian government, via the CAC, has issued a two-month registration deadline for PoS firms to register their agents, merchants, and individuals with the commission by the Central Bank of Nigeria (CBN) requirements.

The renewed directive came amid frequent fraud incidents involving the PoS terminals and plans to stop crypto trading or the CBN's virtual assets.

A Nigerian Inter-Bank Settlement System (NIBBS) report disclosed that PoS terminal fraud accounted for 26.63% of fraud incidents in 2023, prompting the CAC to request operators register to curb system fraud, kidnapping, and ransom payments.

However, the general secretary of AMMBAN, Oluwasegun Elegbede, disclosed in an interview that the registration requirements imposed by the CAC violated the Companies and Allied Matters Act (CAMA) of 2004, which says that the commission has no jurisdiction over individuals not operating a company.

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AMMBAN faults CAC’s motives

Leadership reports that the AMMBAN secretary said that fighting crime is not the jurisdiction of the CAC, adding that the association is already fighting fraud in the system with the collaboration of security agencies. 

He said every operator in the system can be traced as they are visible via NIBBS, as every operator has a PoS terminal and knowledge of NIBBS.

Additionally, Elegbede disclosed that every operator and their terminals are tied to bank accounts.

He stressed the critical role mobile money operators play in driving financial inclusion across Nigeria, especially in the rural areas with limited traditional banking services.

He said AMMBAN members cannot afford the N35,000 registration fee as that may be the running capital of some of their members.

Findings show that some AMMBAN members have begun complying with the CAC directives.

CAC Moves to Shutdown POS Operators as Deadline Ends

Legit.ng earlier reported that the Corporate Affairs Commission (CAC) has announced that it will begin taking stringent actions, including the potential shutdown of Point of Sale (PoS) businesses, following the expiration of its September 5 registration deadline.

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This decision comes due to non-compliance with the CAC's registration directives.

In a public notice released on Friday, September 6, 2024, the CAC expressed that businesses failed to register, suggesting that they may be involved in “unwholesome activities"

Source: Legit.ng