Unregistered PoS Operation in Nigeria is Illegal – CAC
Nigeria’s Corporate Affairs Commission (CAC), has warned that operating an unregistered PoS in the country is a criminal offense.
The Registrar General of the CAC Hussaini Magaji (SAN), has emphasized that all financial technology operators (Fintechs) must complete registration with the commission before July 7, 2023.
He underscored that operating without registration constitutes a legal offense according to statutory provisions. Magaji made this announcement during the formal launch of the registration center for Fintech agents and merchants by the commission in Abuja.
In his words,
“It is the requirement of the law and the guidelines which Fintechs mandate PoS operators while obtaining their machines as outlined by the CBN to register with the CAC. Therefore, operating a PoS without registering with the CAC is a crime in Nigeria and the operator ought to be jailed.”
Speaking further, he said, “CAC was asked to penalise PoS operators who are operating without registration with a N200 form. But because of the president’s position on encouraging small businesses, we agreed that no one should be penalized, which is why we have put a time limit on a date because we have had this sensitisation since December, and by July 7, 2024, we hope to close.”
The recent directive by the CAC is backed by Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020 as well as the 2013 CBN guidelines on agent banking aims to safeguard businesses and strengthen the economy.
The order is coming against the backdrop of frequent fraud incidents involving PoS terminals, which accounted for 26.37 percent of fraud incidents in 2023, according to a fraud report by the Nigeria Inter-Bank Settlement System Plc.
The Federal Government has said mandatory registration of Point-of-Sales operators nationwide will reduce kidnapping and help security agencies arrest recipients of ransom payments from kidnap victims.
The government has also vowed that security agencies would go after PoS operators who fail to comply with the directive to register with the Corporate Affairs Commission after July 7, 2024.
