The Federal Government has announced that mandatory registration of Point-of-Sale (PoS) operators nationwide is aimed at reducing kidnapping incidents and aiding security agencies in apprehending recipients of ransom payments from kidnap victims.
The Registrar-General of the Corporate Affairs Commission (CAC), Hussaini Magaji, made this disclosure on Wednesday during the formal launch of the CAC registration of agents and merchants of financial technology companies (fintechs) in Abuja.
Magaji stated that security agencies would pursue PoS operators who fail to comply with the directive to register with the CAC after the July 7, 2024 deadline.
The government’s decision, backed by legal provisions such as Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020 and the 2013 Central Bank of Nigeria (CBN) guidelines on agent banking, aims to safeguard businesses and enhance economic stability.
This move follows incidents of fraud involving PoS terminals and plans to restrict trading in cryptocurrency or virtual currency by the CBN.
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Speaking at the event, Magaji emphasized the government’s commitment to implementing the mandate by providing a fully digitized service center for seamless registration.
He stressed that the registration process aligns with legal requirements and CBN directives, emphasizing the importance of compliance.
Magaji warned that the 60-day deadline for registration would not be extended and defaulters would face consequences after the deadline.
He highlighted the benefits of registration, including access to loans, legal compliance, and regulatory requirements.
The initiative received mixed reactions from PoS agents. While some agreed with the CBN’s move, others expressed concerns about the additional burden it places on operators, particularly those in rural communities.
The National President of the Association of Mobile Money and Bank Agents in Nigeria, Sarafa Fasasi, questioned the directive’s impact on financial inclusion rates and fairness towards sub-agents.
However, the immediate past president of the association, Victor Olojo, supported the move, citing the need for standardization and enhanced security in the financial sector.
Despite the concerns raised, the government remains firm in its stance, emphasizing the importance of registration in curbing fraudulent practices and ensuring business legitimacy.
As the deadline approaches, efforts are underway to streamline the registration process and address operators’ concerns while maintaining regulatory compliance and security standards.
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