The Nigerian government has directed all Point-of-Sale (PoS) operators to register their businesses with the Corporate Affairs Commission (CAC) by July 7, 2024.
This was revealed during a meeting between fintechs and the Registrar-General/Chief Executive Officer of CAC, Hussaini Magaji (SAN) in Abuja on Tuesday.
This directive, issued in collaboration with the Central Bank of Nigeria (CBN), aims to strengthen the financial sector and combat the rise of PoS-related fraud.
According to the CAC boss, the registration will enhance transparency and accountability within the PoS ecosystem. The high number of PoS terminals deployed nationwide, estimated at over 1.9 million by the Nigeria Inter-Bank Settlement System (NIBSS), necessitates a formal structure to identify and regulate operators.
This move comes amidst growing concerns about fraudulent activities involving PoS terminals. Reports indicate that PoS transactions accounted for a significant portion of fraud incidents in 2023. The registration process is expected to streamline operations, improve customer protection, and deter fraudulent practices.
Magaji emphasized that the two-month deadline is not punitive but serves to ensure compliance and safeguard the financial system.
He added that the registration aligns with Section 863(1) of the Companies and Allied Matters Act (CAMA) 2020 and the CBN’s 2013 guidelines on agent banking.
While details regarding the registration process are awaited, PoS operators are encouraged to contact the CAC for further information.
This directive is expected to have a significant impact on the burgeoning fintech sector in Nigeria, promoting a more secure and reliable environment for PoS transactions.
