Nigeria: CAC Establishes Center for Bulk Registration of PoS Operators Ahead of July Deadline

The Corporate Affairs Commission (CAC) has launched a dedicated center for the bulk registration of Point of Sale (PoS) operators across the country, marking a significant step in efforts to regulate and streamline this segment of the business.

Following a recent directive imposing a two-month deadline for operators to undergo registration, the CAC has set July 7, 2024, as the cutoff date for all PoS operators collaborating with fintech companies like OPay, Palmpay, Moniepoint, Fairmoney, and others, to formalize their businesses.

In an official statement, the Registrar-General/CEO of CAC, Hussaini Ishaq Magaji (SAN), unveiled the center located at the commission’s FCT Zone 5 Office. While the initiative is already operational in the nation’s capital, the commission has not clarified if a similar facility will be established in Lagos, considering the high concentration of operators in the state.

Equipped with state-of-the-art facilities and manned by a dedicated team, the center aims to expedite the registration process and provide round-the-clock support to applicants.

“The establishment of this center underscores our commitment to ensuring compliance with relevant regulations, including Section 863(1) of the Companies and Allied Matters Act (CAMA) 2020, and the Central Bank of Nigeria’s guidelines for Agent Banking,” remarked Magaji during the center’s inauguration ceremony.

He emphasized that the initiative aligns with President Bola Ahmed Tinubu’s vision to enhance financial inclusion among youths and bolster efforts to combat financial crimes across the nation.

Despite the CAC’s efforts to streamline the registration process, reports suggest that some PoS operators, particularly in the Federal Capital Territory (FCT), harbor reservations about the directive.

Speaking to the News Agency of Nigeria (NAN), PoS agents expressed concerns about the financial implications of the registration requirement. Mr. Kofi Kolawole, a seasoned PoS agent, highlighted the potential impact on profit margins, fearing that increased transaction costs could deter customers from utilizing PoS services.

Echoing these sentiments, Mr. Clement Agbasi, another PoS operator in the FCT, underscored the need to strike a balance between regulatory compliance and financial inclusion objectives. Agbasi warned that imposing additional financial burdens on operators could inadvertently hinder efforts to bring the unbanked population into the formal banking system, thus contradicting the CBN’s overarching financial inclusion agenda.