As of today, September 5, 2024, the deadline set by the Corporate Affairs Commission (CAC) in Nigeria for Point of Sale (POS) operators to register their activities has arrived. The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has taken legal action against the directive.
The CAC’s new requirement mandates that POS companies must register their agents, merchants, and individuals with the commission, as part of an effort to curb fraud and regulate the cryptocurrency trade. A report by Nigeria Inter-Bank Settlement System (NIBSS) Plc highlighted that POS terminals were involved in 26.37% of fraud incidents in 2023.
Oluwasegun Elegbede, the national general secretary of AMMBAN, argued in an interview with newsmen that the CAC’s registration requirements violate the Companies and Allied Matters Act (CAMA). Elegbede stated, “The CAC directive on individual POS agents operating under their name contravenes section 863(1) of CAMA, which explicitly states that CAC has no jurisdiction over individuals not operating as a company.”
Elegbede criticized CAC’s approach, saying, “Fighting crime is beyond the jurisdiction of CAC. We are collaborating with law enforcement agencies to tackle fraud. Every POS operator is traceable through BVN/NIN and can be identified through NIBSS and SIM cards.”
He also highlighted the financial burden on small-scale agents, noting, “The cost of CAC registration is not less than N35,000, which could cripple many small-scale agents who are just trying to make a living.”
Despite the legal challenge, many POS operators have complied with the directive. A POS operator using an OPAY terminal shared, “I was able to register online with the help of OPAY area coordinators at a cost of N19,000.” Another operator noted that some financial service providers have facilitated the registration process.
Kemisola, a Lagos-based retailer, reported issues with her POS terminal, stating, “My financial services provider blocked my terminal because it wasn’t registered with the CAC, but I continue to use my personal account for transactions.”
The legal case is pending, and AMMBAN awaits the court’s decision on the matter.
