Nigeria Orders 1.9 Million PoS Agents to Register With CAC to Curb Fraudulent Transactions
The Federal Government of Nigeria, through the Corporate Affairs Commission (CAC), has mandated 1.9 million Point of Sale (PoS) companies to register their businesses as part of anti-fraud measures.
This decision was reached during a meeting in Abuja between Fintech representatives and the Registrar-General of CAC, Hussaini Ishaq Magaji.
Addressing the gathering, the CAC head emphasized that the directive aims to protect Fintech customers’ businesses and bolster the economy. He underscored that the action is supported by Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020, as well as the 2013 CBN guidelines on agent banking.
The CAC has set a two-month registration period, ending on July 7, 2024.
A statement by the commission read,
“The Corporate Affairs Commission and fintech companies in Nigeria, better known as PoS operators, have agreed to a two-month timeline to register their agents, merchants, and individuals with the CAC in line with legal requirements and the directives of the Central Bank of Nigeria. The agreement was reached today during a meeting between Fintechs and the Registrar-General, CAC, Hussaini Ishaq Magaji, in Abuja.”
The CAC’s recent directive comes as fraudulent incidents involving PoS terminals have continued to surge in the country. According to a 2023 fraud report by the Nigeria Inter-Bank Settlement System Plc (NIBSS), PoS terminals accounted for 26.37% of fraud incidents in 2023.
