September 05, 2024
By Adedoja Adesoji
As of today, September 5, 2024, the deadline imposed by Nigeria’s Corporate Affairs Commission (CAC) for Point of Sale (POS) operators to register their activities has arrived. In response, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has initiated legal action against this directive.
The CAC’s new regulation requires POS companies to register their agents, merchants, and individuals with the commission, aiming to reduce fraud and regulate cryptocurrency transactions. According to a report by Nigeria Inter-Bank Settlement System (NIBSS) Plc, POS terminals were linked to 26.37% of fraud cases in 2023.
Oluwasegun Elegbede, AMMBAN’s national general secretary, argued in a recent interview that the CAC’s registration mandate infringes on the Companies and Allied Matters Act (CAMA). Elegbede commented, “The CAC’s directive concerning individual POS agents operating independently contradicts section 863(1) of CAMA, which clearly states that CAC lacks authority over individuals not functioning as companies.”
Elegbede also criticized the CAC’s strategy, asserting, “Combating crime falls outside the CAC’s scope. We are working with law enforcement to address fraud. Each POS operator can be tracked via BVN/NIN and identified through NIBSS and SIM cards.”
He further emphasized the financial strain on small-scale agents, stating, “The registration fee set by the CAC is at least N35,000, which could severely impact many small-scale agents who are merely trying to earn a living.”
Despite the ongoing legal challenge, numerous POS operators have adhered to the directive. One operator using an OPAY terminal reported, “I successfully registered online with assistance from OPAY area coordinators, at a cost of N19,000.” Another noted that some financial service providers have made the registration process easier.
Kemisola, a retailer based in Lagos, encountered problems with her POS terminal, explaining, “My financial services provider blocked my terminal due to non-registration with the CAC, but I am still using my personal account for transactions.”
The legal proceedings are still ongoing, and AMMBAN is awaiting the court’s verdict on the issue.
