FG Orders POS Operators to Register with CAC, Sets Deadline

The Nigerian government has directed all point-of-sale (PoS) operators in the country to register their businesses with the Corporate Affai...

The Nigerian government has directed all point-of-sale (PoS) operators in the country to register their businesses with the Corporate Affairs Commission (CAC) within two months, in accordance with the Central Bank of Nigeria (CBN) requirements. The decision, announced following a meeting between Fintechs and the Registrar-General of CAC, Hussaini Ishaq Magaji, underscores the government’s commitment to strengthening regulatory frameworks within the financial sector. The directive, in line with Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020, and the 2013 CBN guidelines on agent banking, aims to ensure compliance with legal requirements and safeguard businesses operating within the PoS ecosystem. Magaji emphasized that the registration timeline, set to expire on July 7, 2024, is not targeted at specific groups or individuals but is geared towards genuinely protecting businesses and fostering a more transparent and secure operating environment. The agreement between the Corporate Affairs Commission and fintech companies, commonly referred to as PoS operators, signifies a collaborative effort to uphold industry standards and regulatory compliance. As per data from the Nigeria Inter-Bank Settlement System (NIBSS), merchants and individuals nationwide currently deploy over 1.9 million PoS terminals, highlighting the widespread use of electronic payment systems across the country. This trend coincides with an increase in fraudulent activity in Nigeria’s financial system. A recent NIBSS report revealed a staggering 496.96 percent increase in financial sector fraud from 2019 to 2023, emphasizing the need for stronger regulatory measures and tighter oversight mechanisms to protect the integrity of electronic payments and protect both businesses and consumers.