The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has expressed displeasure over the recent directive by the Corporate Affairs Commission (CAC), mandating that all Point of Sale (POS) agents must register with it, regardless of their status as individuals or non-individual business.
AMMBAN’s National General Secretary Oluwasegun Elegbede, described the directive as unnecessary, stating that it is simply a mere revenue generation move to further tax hapless Nigerians.
In his words,
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“We disagree with the CAC’s claim that it wants to fight crimes in the agency banking business space through registration. We believe that the kinds of crimes in the space are both human and technical, which CAC registration cannot fight. We see their efforts as merely a revenue generation move to further tax hapless Nigerians who are trying to get by.”
Citing Section 18(1) of CAMA which states that “a person may apply to the Commission for the registration of a company” and Section 22(1) states that “a company shall be deemed to be a separate legal entity from its members. This implies that individuals and non-individuals (companies) have different legal statuses and requirements.
Moreover, Mr Elegbede argued that the CBN Policy on Financial Inclusion and Development states that agency banking services shall be provided by agents who are individuals or non-individuals companies registered with the CBN” (Section 2.1). According to him, the policy recognizes the distinction between individuals and non-individuals and does not require individuals to register with the CAC.
He further described the move by CAC as doing the right thing at the wrong time, because POS operators are small-scale business people who are trying to make ends meet in an unfriendly economy coupled with high inflation rates.
However, despite AMMBAN claims, the Registrar-General of the CAC, Hussaini Magaji, had stated that the registration of PoS agents was not intended to target specific groups or individuals but was genuinely aimed at safeguarding businesses because it has become an avenue for a lot of financial misconduct.
Meanwhile, PoS operators disclosed that they have concluded plans to head to court to address the legality of the mandatory Corporate Affairs Commission for its members.
They assert that the directive from the CAC violated the provision of the Companies and Allied Matters Act, Laws of the Federation of Nigeria, 2004, which “explicitly states that the commission has no jurisdiction over individuals not operating as a company.”
Some aggrieved members have expressed displeasure stating that the CAC should focus its efforts on addressing the high failure rate of registered businesses in Nigeria, rather than enforcing regulations on individual POS agents operating under their names.
They added that rather than embarking on policies that will eradicate entrepreneurs, increase unemployment, and reverse the gains of financial inclusion in Nigeria, they should focus their energy on other important policies.