Upon a recent directive, all point-of-sale operators in Nigeria must register their businesses with the Corporate Affairs Commission (CAC) within the next two months, aligning with the regulatory requirements set by the Central Bank of Nigeria (CBN).
A statement released by CAC following a meeting between Fintechs and the Registrar-General, Hussaini Ishaq Magaji in Abuja, confirmed this decision.
The Commission clarified that the move is in accordance with Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020, and the CBN guidelines on agent banking established in 2013.
Magaji emphasized that the deadline for registration, which is set for July 7, 2024, is not intended to target specific groups or individuals, but rather to safeguard businesses.
“Both the Corporate Affairs Commission and Fintech companies, commonly referred to as PoS operators in Nigeria, have agreed to the two-month registration timeline for their agents, merchants, and entities to comply with legal mandates and the directives of the CBN,” Magaji stated.
The number of PoS terminals deployed by merchants and individuals nationwide exceeds 1.9 million, as reported by the Nigeria Inter-Bank Settlement System.
This enforcement comes as there has been a significant increase in financial fraud within Nigeria’s financial sector.
According to a recent report by NIBSS, financial sector fraud surged by 496.96% between 2019 and 2023, coinciding with the growth in electronic payment transactions.