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PoS Operators Set to Challenge CAC Mandate in Court

 

PoS operators, represented by the National President of the Association of Mobile Money and Bank Agents in Nigeria, are gearing up for legal action against the Corporate Affairs Commission (CAC). The association asserts that the CAC’s directive compelling PoS operators to register with them infringes upon the Companies and Allied Matters Act, 2004.

 

Fasasi Sarafadeen, the President of the association, argues that the CAC’s mandate violates the law, specifically Section 863(1) of the Companies and Allied Matters Act, which delineates the commission’s jurisdiction over individuals not operating as companies.

 

Sarafadeen emphasizes that the directive only applies to non-individual entities, contrary to the CAC’s broad interpretation. He stresses that individual PoS agents operating under their names should not fall under the CAC’s purview.

 

The association is prepared to challenge this legally, seeking clarification on the interpretation of relevant sections of the CAMA. Sarafadeen highlights the distinction between individual and non-individual PoS agents, noting that only the latter, operating under business names, are subject to CAC registration requirements.

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Additionally, the association criticizes the CAC’s priorities, urging them to focus on addressing the high failure rate of registered businesses in Nigeria rather than burdening PoS agents with unnecessary regulations.

 

Moreover, the association raises concerns about the potential impact on job creation, aligning their stance with President Bola Tinubu’s agenda against policies that contribute to unemployment.

 

The Federal Government, through the CAC, had imposed a two-month registration deadline for PoS companies, citing security concerns and the need for regulatory compliance. However, PoS operators argue that this move is disproportionate and could stifle entrepreneurship.

 

The directive follows recent regulatory actions by the Central Bank of Nigeria (CBN), including restrictions on major fintech firms and warnings against cryptocurrency trading, amid concerns about fraud and money laundering.

 

As PoS operators prepare to contest the CAC mandate in court, the broader regulatory landscape in Nigeria’s financial sector remains under scrutiny, with ongoing efforts to balance security concerns with economic growth and innovation.

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