The Corporate Affairs Commission (CAC) has issued a strong warning to Point-of-Sale (POS) operators across Nigeria following the expiration of the business registration deadline set for September 5, 2024. The CAC had initially announced the requirement for registration on July 7, 2024.
In a statement on Friday, the CAC expressed disappointment over the low compliance rate among POS operators despite their large numbers across the country. However, the commission acknowledged and commended those operators who had registered, praising their “positive attitude” towards adhering to the directive.
The CAC raised concerns about the many operators who had failed to comply, suggesting that some may be involved in questionable activities. The statement read, “Recalcitrant operators have refused to adhere to the advice for formalisation due possibly to engagements in unwholesome activities or for reasons best known to them.”
The CAC warned that it is working with law enforcement and relevant stakeholders to enforce compliance, including potential shutdowns and other legal consequences for non-compliant operators.
The registration directive is part of the Federal Government’s efforts, through the CAC, to ensure that POS operators meet legal requirements in line with Central Bank of Nigeria guidelines. The two-month registration window had been provided to allow operators to formalise their businesses.
However, the move has been met with resistance. Sarafadeen Fasasi, National President of the Association of Mobile Money and Bank Agents in Nigeria, described the CAC’s planned enforcement as illegal. Fasasi argued that the commission lacks the authority to regulate fraud in the industry and urged his members to disregard the CAC’s warning.
“What the CAC is doing is illegal; the case is in court. What they are trying to do is contempt of court, and we are writing the court immediately to stop CAC from going ahead with its plan,” Fasasi said, adding that security agencies will also be informed. He emphasized that all parties must respect the court’s ruling until the case is resolved.
