The Corporate Affairs Commission (CAC) has announced that Point of Sales (PoS) agents working with major fintech companies in Nigeria like OPay, Palmpay, and Moniepoint, among others, are required to have their businesses registered by July 7, 2024.
Hussaini Magaji, the Registrar-General of the CAC, revealed this information in a statement released by the Commission, mentioning that this requirement was agreed upon with the PoS operators during a meeting held in Abuja on Monday.
Magaji stated that the registration deadline aligns with legal obligations and the directives set by the Central Bank of Nigeria (CBN).
He clarified that the registration timeline is not meant to target specific groups or individuals but is intended to safeguard businesses.
Moreover, Magaji highlighted that this 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.
Regarding the registration process, Tokoni Igoin Peter, the Special Adviser to President Bola Tinubu on ICT development and innovation, is committed to ensuring smooth facilitation of the process in line with the Renewed Hope Initiative of the current administration, as conveyed during the meeting.
The statement further mentioned that various speakers from the fintech sector pledged to collaborate with the Commission to ensure a seamless implementation of the directive, emphasizing the importance of thorough sensitization to achieve the desired outcomes.
The companies represented at the meeting included Opay, Momba, Palmpay Ltd., Paystack, Fairmoney Micro Finance Bank, Moniepoint, and Teasy Pay. The event’s highlight was the signing of a document by the representatives to endorse the project.
Combatting PoS fraud has been a key objective for regulators, leading to the requirement for PoS agents to undergo registration to mitigate fraudulent activities in the PoS space.
Reports, like the 2023 Annual Fraud Landscape report by the Nigeria Inter-Bank Settlement System (NIBSS), have indicated that PoS channels were among the most exploited payment channels by fraudsters in 2023, with losses to PoS fraud increasing to N4.4 billion in 2023 from N2.6 billion in 2022.
Similarly, data from the Financial Institutions Training Centre (FITC) indicated a rise in PoS fraud cases in Q2 2023 which resulted in a loss of N428 million. The industry acknowledges the escalating trend of PoS fraud over the years, attributing it to the growing use of PoS for transactions.
By mandating the registration of PoS operators as business entities, regulators aim to curb fraudulent activities in the sector and enhance overall security in the business environment.
