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The Corporate Affairs Commission (CAC) has reiterated its commitment to enforcing the registration of Point of Sale (PoS) operators, warning that businesses that fail to comply risk shutdowns. Despite commending the businesses that have adhered to the directive, the commission noted that compliance remains low, considering the vast number of PoS operators across the country.
While specific figures were not disclosed, the directive applies to approximately 1.9 million PoS agents who wish to continue their operations in Nigeria. The CAC expressed concern over non-compliant operators, suggesting that their refusal to formalize may be linked to questionable practices or undisclosed reasons.
“The recalcitrant operators have refused to adhere to the advice for formalisation, possibly due to engagement in unwholesome activities or for reasons best known to them,” the commission stated.
The requirement for PoS operators to register with the CAC was first announced in May 2024, part of a broader effort to curb fraud and enhance transparency in the financial sector. In response, the CAC introduced a streamlined system for bulk registrations, making it easier for PoS agents to enter the commission’s database.
Initially, a 60-day window was provided for registration, with a deadline set for July 7, 2024. However, the deadline was extended to September 5, 2024, with a final warning that non-compliant operators could face prosecution and risk the closure of their businesses.
This move by the Federal Government follows a 2023 report from the Nigeria Inter-Bank Settlement System Plc (NIBSS), which revealed that PoS terminals were responsible for 26.37% of fraud incidents in the previous year.
One notable example of PoS-related fraud involved Flutterwave, a major payment services provider. In October 2023, the company reported that several PoS merchants exploited a technical glitch on its platform, performing unauthorized transactions that led to significant losses.
The CAC remains firm in its stance that formalization is critical to reducing fraud and ensuring transparency in the country’s growing PoS industry.
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