In a bid to curb rising fraud incidents and promote transparency in the financial sector, the Nigerian government, through the Corporate Affairs Commission (CAC), has issued a directive requiring all Point of Sales (PoS) operators to register their agents, merchants, and individuals within a two-month ultimatum. This directive, which aligns with the directives of the Central Bank of Nigeria (CBN), aims to safeguard the interests of Fintech customers and bolster the country’s economy.
The CBN’s deadline of July 7, 2024, for PoS operators to complete registration with the CAC underscores the urgency of the matter. The directive is in response to a concerning trend revealed by the Nigeria Inter-Bank Settlement System Plc (NIBSS), indicating that PoS terminals accounted for 26.37% of fraud incidents in 2023, highlighting a pressing need for regulatory intervention.
For the estimated 1.9 million PoS agents operating in Nigeria, compliance with this directive is imperative for continued business operations within the country. Failure to adhere to the registration requirements may result in disruptions to their activities, emphasizing the significance of prompt action.
The significance of PoS technology in Nigeria’s financial landscape cannot be overstated. Introduced by the CBN in 2013 as part of efforts to enhance financial inclusion, PoS terminals have revolutionized access to financial services, particularly in underserved areas where traditional banking infrastructure is limited. With over 1.8 million PoS agents in 2022 alone, the initiative has not only expanded access to banking services but also catalyzed job creation and spurred the growth of fintech companies such as Opay, Moniepoint, and Palmpay.
In conclusion, the new registration directive for PoS operators represents a proactive step towards safeguarding the integrity of Nigeria’s financial system. Still, it will serve as a barrier for those seeking entry into the business. Compliance with regulatory requirements is essential for PoS operators to navigate the evolving regulatory landscape and continue contributing to the nation’s financial inclusion agenda.
For assistance with PoS business registration in line with CAC requirements, contact Olisa Agbakoba Legal (OAL) today.
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