In a bid to bolster security measures and regulatory oversight, the Federal Government has mandated the mandatory registration of Point-of-Sale (PoS) operators nationwide. This directive, aimed at curbing criminal activities such as kidnapping and fraudulent transactions, underscores the government’s commitment to safeguarding businesses and enhancing financial integrity.
Registrar-General of the Corporate Affairs Commission (CAC), Hussaini Magaji, announced the enforcement of this directive at the formal launch of the CAC registration for fintech agents and merchants in Abuja. The initiative, supported by legal provisions and directives from the Central Bank of Nigeria (CBN), seeks to ensure compliance with regulatory standards and foster economic stability.
Under the framework of the Companies and Allied Matters Act (CAMA) 2020 and CBN guidelines on agent banking, PoS operators are required to register as corporate entities with the CAC within a stipulated timeframe. Failure to comply with this requirement after July 7, 2024, will result in punitive measures by security agencies.
Magaji emphasized the pivotal role of registration in enhancing transparency and accountability within the financial ecosystem. By capturing relevant data and establishing a digital service center, the government aims to facilitate seamless registration processes and address inquiries promptly.
The move comes amidst rising concerns over fraudulent activities involving PoS terminals, accounting for a significant percentage of financial fraud incidents. By enforcing registration, the government aims to mitigate risks associated with unregulated financial transactions and ensure traceability of illicit activities.
Despite initial apprehensions from some PoS agents regarding the registration process, stakeholders recognize the long-term benefits of standardization and enhanced security. Victor Olojo, the immediate past president of the Association of Mobile Money and Bank Agents in Nigeria, lauded the initiative for promoting accountability and curbing fraudulent practices.
With over 1.9 million PoS terminals deployed nationwide, the registration mandate signifies a crucial step towards strengthening regulatory frameworks and fostering trust in the financial sector. As the deadline approaches, stakeholders are urged to embrace the registration process as a proactive measure towards promoting financial integrity and sustainable growth.
