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CAC Enforces CBN’s Order on PoS Registration Amid Operator Resistance

CAC Enforces CBN’s Order on PoS Registration Amid Operator Resistance

Mar 16, 2022

The Corporate Affairs Commission (CAC) has taken a firm stance to enforce the Central Bank of Nigeria’s (CBN) recent directive regarding the mandatory registration of Point of Sale (PoS) operators across the country. This move, in line with Section 863 of the Companies and Allied Matters Act (CAMA) 2020, aims to regulate and formalize PoS businesses within the financial ecosystem.

In a memo issued on April 30, the CBN instructed all non-individuals operating under the Agent Banking Authorization to promptly register their enterprises with the CAC. Failure to comply with this directive could lead to repercussions, as emphasized by the Registrar-General’s call for maximum adherence to the legal requirements to foster economic growth.

However, this directive has been met with resistance from PoS agents, particularly in the Federal Capital Territory (FCT). Some operators argue that the registration process will escalate transaction costs for customers, potentially affecting the viability of their businesses. Mr. Kofi Kolawole, among others, highlights concerns regarding the impact of registration on profitability, fearing an inevitable increase in transaction charges that customers would have to bear.

Moreover, Mr. Clement Agbasi expressed apprehension that this move contradicts the CBN’s financial inclusion agenda. He suggests that the imposition of additional charges, coupled with existing levies like the 0.5 percent cyber-security levy, could deter customers from utilizing banking services, thus defeating the purpose of PoS operations in facilitating financial access for the unbanked population.

As the CAC moves forward with its enforcement efforts, the resistance from PoS operators underscores broader concerns about balancing regulatory compliance with financial accessibility and affordability for consumers. The outcome of this regulatory push will likely shape the future landscape of PoS operations and the broader fintech industry in Nigeria.

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