Emmanuel Ochayi
The Corporate Affairs Commission (CAC) has reiterated its warning to Point of Sale (POS) operators following the expiration of the 60-day deadline for business registration.
The directive, issued on July 7, 2024, gave operators until September 5, 2024, to comply.
Join our WhatsApp ChannelCAC moves toward enforcement of unregistered POS businesses
In a statement on Thursday, the CAC said, “We are working closely with law enforcement agencies to develop an enforcement framework.”
This framework aims to tackle non-compliant POS operators and may involve business shutdowns and legal actions. According to the Commission, the low compliance rate is concerning, considering the vast number of POS operators across Nigeria.
The CAC commended businesses that complied with the registration process, saying, “Those who have complied showed responsibility in formalising their operations.”
However, the Commission criticised operators who have failed to meet the registration requirement, hinting that some may be engaged in “unwholesome activities.”
Consequences for non-compliant operators
The Registrar-General of the CAC, Hussaini Magaji, emphasised the need for all operators to comply with the directive, stating that enforcement will begin shortly.
“We urge unregistered POS operators to register their businesses immediately or face severe consequences,” Magaji said.
The CAC noted that many POS agents, particularly those in rural areas, may have encountered network issues during the registration process. As a result, a 60-day extension was provided in July, moving the final deadline to September 5, 2024.
READ ALSO: CAC Extends Deadline For PoS Operators By 60days To Register Businesses
Legal backing for the registration
The registration requirement is based on Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020 and the 2013 guidelines on agent banking issued by the Central Bank of Nigeria (CBN).
Magaji explained that this measure is intended to protect fintech companies, secure customer transactions, and address the rise in financial fraud.
Magaji also revealed that major fintech companies like OPay, Palmpay, and Moniepoint agreed to the registration requirement during a meeting in Abuja earlier in the year.
These companies and their agents were given a July 7 deadline to comply.
Next steps for CAC and law enforcement
With the registration deadline now expired, the CAC has made it clear that enforcement is imminent. “We will not hesitate to shut down businesses that fail to comply,” Magaji said. The Commission is prepared to implement sanctions beyond business closures, possibly including legal actions.
The CAC also raised concerns that some operators who resisted the registration might be avoiding transparency. “We believe that some operators are resisting registration for reasons that go beyond technical challenges,” a CAC official remarked.
Looking ahead: Formalisation and compliance
The CAC’s enforcement plans aim to create a more formalised business environment for POS operators and fintech companies in Nigeria.
Magaji stressed the importance of registration, stating that it “strengthens the economy and builds trust within the financial industry.”
As the Commission moves forward, it urges any remaining unregistered POS operators to act quickly to avoid penalties and disruptions to their businesses.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
