CAC Set to Shut Down Unregistered PoS Businesses as Deadline Expires
The Corporate Affairs Commission of Nigeria (CAC) has announced it will begin taking decisive action, to shut down Point of Sales (PoS) businesses that have failed to register, following the expiration of its September 5 deadline.
In a public notice released on Friday, the CAC expressed concern over the lack of compliance with its directive, warning that businesses that chose not to register may be involved in “unwholesome activities.”
This move comes amidst a legal challenge by fintech business owners under the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN). They have taken the matter to court, contesting the legality of the mandatory registration.
The CAC had initially issued a 60-day registration deadline in a notice published on July 7, 2024, giving PoS operators until September 5 to formalize their businesses. However, according to the CAC’s update, compliance has been far below expectations given the large number of PoS operators in the country.
“The Commission acknowledges those operators who have taken steps to register their businesses and commends their positive approach,” the statement read. “However, operators who have refused to comply may be engaging in unwholesome activities or have other reasons for their non-compliance.”
The CAC also emphasized that it is working closely with law enforcement agencies and other stakeholders to implement a strict enforcement and sanctioning framework. This could involve not only the shutdown of non-compliant businesses but also severe legal consequences.
With enforcement measures on the horizon, PoS operators are urged to comply to avoid disruption to their operations.
