Point of Sale (PoS) companies now have two months to register their agents, merchants, and persons with the commission in compliance with legislative mandates and Central Bank of Nigeria (CBN) guidelines, according to a directive issued by the Nigerian government through the Corporate Affairs Commission (CAC).
Fintechs and Hussaini Ishaq Magaji, the Registrar-General CAC, met in Abuja, and this came about as a result.
Nationwide, businesses and individuals are estimated to be using more than 1.9 million PoS terminals.
During the meeting, the head of the CAC stated that the policy is intended to protect Fintech customers’ businesses and boost the economy.
He emphasized further that the 2013 CBN recommendations on agent banking and Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020, supported the move equally.
The head of the CAC stated that the registration period, which ends on July 7, 2024, was really intended to safeguard businesses rather than any particular organization or person.
The commission released a statement that said, “In compliance with legal mandates and Central Bank of Nigeria directives, the Corporate Affairs Commission and fintech companies in Nigeria, also referred to as PoS operators, have agreed to a two-month timeline for registering their agents, merchants, and individuals with the CAC.
“Fintechs and the Registrar-General, CAC, Hussaini Ishaq Magaji, met today in Abuja and came to an agreement.”
This new guideline was issued in the wake of multiple POS terminal fraud occurrences and the Central Bank of Nigeria’s intention to cease trading in cryptocurrencies and other virtual currencies. According to a fraud report by the Nigeria Inter-Bank Settlement System Plc, POS terminals accounted for 26.37% of fraud incidences in 2023.
Major fintech companies including Kuda, Opay, PalmPay, and Moniepoint were prohibited by the CBN last week from accepting new users and were directed to caution their users against trading cryptocurrencies or any other virtual currency on their apps. The CBN also threatened to block any accounts that were discovered to be involved in these activities.
