The Corporate Affairs Commission (CAC) has extended the deadline date for point-of-sale (PoS) operators in Nigeria to September 5, 2024.
This was announced by the commission in a statement signed by its management, announcing a 60-day extension, from the initial deadline date of 7th July 2024.
The CAC disclosed that the extension was to give sufficient time to operators particularly those in remote areas who might have encountered network challenges to register and continue with their businesses.
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This new extension comes with a stern warning that operators who fail to meet the new deadline date, will face a penalty and risk losing their business.
The CAC said,
“The Corporate Affairs Commission wishes to notify Fintech Operators also known as Point of Sales (PoS) Operators that the initial deadline of 7th July 2024 given for the registration of sole agents, Super Agents, and Agents has been extended for sixty days beginning from 7th July 2024 to the 5th September 2024.
“This is to give sufficient time to operators particularly those in remote areas who might have encountered network challenges to so register and continue with their businesses. Operators who fail or refuse to register at the end of the extended deadline run the risk of losing such businesses and prosecution for aiding and abetting criminal activities.”
Backstory
Recall that in 2013, the Central Bank of Nigeria (CBN) launched agent banking and point-of-sale systems to increase financial inclusion in the country.
The financial system which aided in financial inclusion as well as easing financial transactions was however ravaged by fraudulent cases.
This spurred the CBN in January this year, to collaborate with the Association of Mobile Money and Banking Agents of Nigeria (AMMBAN) to create a new feature on PoS terminals to flag fraudulent transactions.
To further mitigate the increased fraud cases, two months ago, the CAC announced that PoS agents of major fintech in Nigeria including OPay, Palmpay, and Moniepoint, among others, have been given a deadline of July 7, 2024, to register their business.
The Registrar-General of the commission Hussaini Magaji, who announced this said this was the agreement with the PoS operators after a meeting in Abuja.
According to him, the registrations align with the legal requirements and the directives of the Central Bank of Nigeria, to safeguard the businesses of fintechs and customers and strengthen the economy. He elaborated on the benefits of registration, emphasizing that it goes beyond taxation to encompass access to loans, legality, and compliance with regulatory requirements.
The action backed by Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020 as well as the 2013 CBN guidelines on agent banking aims to safeguard businesses and strengthen the economy.
It also came against the backdrop of frequent fraud incidents involving PoS terminals and plans to stop trading in cryptocurrency or any virtual currency by the Central Bank of Nigeria.
It was reported in 2023 that PoS terminals accounted for 26.37 percent of fraud incidents, according to a fraud report by the Nigeria Inter-Bank Settlement System Plc.
Meanwhile, PoS agents have reacted to the order asking them to register with the CAC. While some agents agreed with the CBN, many said it would place more burden on the operators, especially those in rural communities.