The Federal Government is intensifying efforts to enhance security and combat financial crimes with the mandatory registration of Point-of-Sales (PoS) operators nationwide. The move, slated to commence on July 7, 2024, aims to curb kidnapping incidents and apprehend recipients of ransom payments, while also targeting fraudulent activities associated with PoS terminals.
Hussaini Magaji, the Registrar-General of the Corporate Affairs Commission (CAC), announced the initiative during the formal launch of CAC registration for fintech agents and merchants in Abuja. This launch coincided with the unveiling of a 24-hour service center to facilitate swift responses to inquiries and approvals.
Under the directive, PoS operators failing to comply with registration requirements will face enforcement actions by security agencies. The initiative aligns with legal provisions outlined in the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria’s (CBN) guidelines on agent banking.
Fraud incidents involving PoS terminals, which accounted for 26.37% of reported cases in 2023 according to the Nigeria Inter-Bank Settlement System Plc, underscore the urgency of the registration mandate. The recent suspension of major fintech firms from onboarding new customers further emphasizes the government’s commitment to tightening regulations in the financial sector.
In response to the directive, PoS agents expressed mixed sentiments. While some acknowledged the need for standardization and enhanced security, others raised concerns about the financial burden and operational challenges, especially for those in rural areas.
Sarafa Fasasi, the National President of the Association of Mobile Money and Bank Agents in Nigeria, criticized the directive, highlighting its potential impact on financial inclusion efforts. However, Victor Olojo, the immediate past president of the association, supported the move, citing its benefits in curbing fraudulent practices and improving accountability.
Despite differing opinions among stakeholders, the government remains steadfast in its resolve to enforce registration requirements, emphasizing the pivotal role of PoS operators in achieving financial stability and security nationwide.
As the deadline approaches, stakeholders are urged to prioritize compliance with regulatory mandates to safeguard businesses and promote a transparent financial ecosystem in Nigeria.
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