The Federal Government has announced that the compulsory registration of Point-of-Sale (PoS) operators nationwide will aid in combating kidnapping and assist security agencies in apprehending recipients of ransom payments from kidnapping incidents.
According to Hussaini Magaji, the Registrar-General of the Corporate Affairs Commission (CAC), failure to comply with the directive to register with the CAC after July 7, 2024, will result in security agencies pursuing PoS operators. Magaji made this disclosure during the formal launch of the CAC’s registration of agents and merchants of financial technology companies in Abuja.
This initiative also saw the introduction of a 24-hour service center to expedite responses to inquiries and approvals for prospective applicants.
The government, through the commission, issued a two-month registration deadline for PoS operators to register as corporate entities, in line with legal requirements and directives from the Central Bank of Nigeria. This measure, supported 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 protect businesses and fortify the economy.
The decision comes in light of PoS terminals accounting for 26.37% of fraud incidents in 2023, as reported by the Nigeria Inter-Bank Settlement System Plc. Additionally, recent actions by the CBN halted major fintech firms from onboarding new customers and discouraged cryptocurrency trading on their platforms.
Hussaini emphasized the government’s commitment to implementing the mandate by providing a digitized service center for seamless registration. He clarified that the registration process aligns with legal requirements and CBN directives, with the 60-day deadline non-negotiable.
Magaji underscored the importance of registration in reducing criminal activities and fraudulent practices. He assured that after the deadline, defaulters would face consequences, as security agencies would pursue them.
While some PoS agents expressed concerns about the registration directive, others supported it, citing the need for standardization and enhanced security in the financial system. Despite differing opinions, the government aims to ensure compliance and streamline operations within the PoS industry for the benefit of all stakeholders.
