Nigeria: CAC Extends PoS Operators’ Registration Deadline to September 5, 2024

CAC Extends PoS Operators’ Registration Deadline to September 5, 2024
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The Corporate Affairs Commission (CAC) has extended the deadline for Point of Sales (PoS) operators in Nigeria to register their businesses by 60 days. The new deadline is now September 5, 2024, instead of the initial deadline of July 7. This extension was announced via a statement released on Saturday.

The CAC warned that operators who fail to meet the new deadline will face prosecution and risk losing their businesses.

What the Commission Said

In the announcement, the CAC stated:

“The Corporate Affairs Commission wishes to notify Fintech Operators, also known as Point of Sales (POS) Operators, that the initial deadline of July 7, 2024, given for the registration of sole Agents, Super Agents, and Agents has been extended for a period of sixty days, beginning from July 7, 2024, to September 5, 2024.

“This extension aims to provide sufficient time for operators, especially those in remote areas who might have encountered network challenges, to complete their registrations and continue their operations.

“Operators who fail or refuse to register by the end of the extended deadline run the risk of losing their businesses and facing prosecution for aiding and abetting criminal activities.”

Registration Challenge

Since the initial deadline was announced in May, some PoS operators have reported difficulties in completing their registrations on the CAC portal. In response, Lagos State Governor Babajide Sanwo-Olu appealed to the Commission to simplify the process.

During a courtesy visit by the CAC Registrar-General, Hussaini Magaji, to Alausa, Ikeja, Sanwo-Olu, represented by Deputy Governor Dr. Obafemi Hamzat, suggested that the CAC adopt a model similar to the state tax card, which provides a database to manage infrastructure needs without burdening businesses.

Sanwo-Olu emphasized the state government’s willingness to collaborate with the CAC to ensure seamless registration and called for more sensitization to correct the perception that registering with the CAC is difficult.

In May, the CAC announced that PoS agents of major fintech companies in Nigeria, including OPay, Palmpay, and Moniepoint, had until July 7, 2024, to register their businesses.

Registrar-General Hussaini Magaji stated that this agreement was reached after a meeting with PoS operators in Abuja. He noted that the registrations align with legal requirements and directives from the Central Bank of Nigeria (CBN).

Magaji explained that the action is backed by Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020, as well as the 2013 CBN guidelines on agent banking. The aim is to safeguard fintech businesses and customers while strengthening the economy.

Meanwhile, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) recently condemned the mandatory registration, describing it as an attempt to generate revenue by taxing more Nigerians.

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