Emmanuel Ojukwu
Point of Sale (PoS) operators in Nigeria, represented by the National President of the Association of Mobile Money and Bank Agents, are gearing up for a legal showdown over the compulsory registration directive issued by the Corporate Affairs Commission (CAC).
The association’s president, Fasasi Sarafadeen, criticized the mandate, citing violations of the Companies and Allied Matters Act and announced plans to challenge it in court.
Sarafadeen highlighted the discrepancy between the CAC’s directive and the provisions of the Companies and Allied Matters Act, which, he argued, does not empower the commission to regulate individuals operating as PoS agents. He asserted that the directive only applies to non-individual entities and pledged to pursue legal action to contest its validity.
Clarifying the distinction between individual and non-individual PoS agents, Sarafadeen emphasized that the former operate under their names, while the latter function under registered or unregistered business names. He underscored that the CAC’s jurisdiction extends to non-individual agents, such as businesses, but not to individual agents who operate independently.
Regarding sub-agents, Sarafadeen clarified that they function as branches of registered companies and should not be classified as independent entities subject to CAC registration. He criticized the commission’s focus on PoS agents, urging it to address the high failure rate of registered businesses in Nigeria instead.
Moreover, Sarafadeen argued that the CAC’s enforcement of registration requirements contradicts President Bola Tinubu’s agenda for job creation and economic empowerment. He urged government intervention to prevent policies that could exacerbate unemployment and hinder financial inclusion initiatives.
The directive for PoS companies to register their agents and merchants with the CAC comes amid concerns over fraud incidents involving PoS terminals and the Central Bank of Nigeria’s move to restrict trading in cryptocurrency. The regulatory landscape surrounding fintech firms and PoS operators is evolving, with authorities taking measures to enhance oversight and combat financial crimes.
As the legal battle looms, PoS operators are poised to challenge the CAC’s authority and defend their interests in a rapidly evolving regulatory environment shaped by technological advancements and security concerns.
