Barely 24 hours after the expiration of the 60-day timeline it directed all Nigerian Point of Sale (POS) operators to register their entities in line with regulatory requirements, the Corporate Affairs Commission (CAC) on Friday threatened to commence the shutdown of non-compliant POS outlets nationwide.
The commission, in a Public Notice issued on Friday, confirmed that it had commenced the process of taking drastic actions, including shutting down of the defaulting PoS operators’ businesses, describing them engaging in “unwholesome activities”.
It stated: “The Corporate Affairs Commission wishes to remind the general public, particularly Fintech operators also known as Point of Sale (POS) operators, that the 60-day deadline given in daily newspaper publications of July 7, 2024, for the registration of such businesses expired on September 5, 2024.
“The Commission noted inadequate compliance with the directive for formalization when viewed from the background of the large number of POS operators in the country. Those who have taken steps to formalize in line with the Commission’s directive are commended for their positive attitudes.
“Recalcitrant operators have refused to adhere to the advice for formalization due possibly, to engagements in unwholesome activities or for some reasons best known to them.
“We are to make it clear that the Commission is working with the Law Enforcement Agencies and other relevant stakeholders to deploy comprehensive enforcement and sanction framework that may include not only possible shutdown but other severe legal consequences”, it added.
It would be recalled that the CAC had in May this year announced that POS agents of leading fintechs in the country, including OPay, PalmPay, Moniepoint and others had been given July 7, 2024 timeline to formalize their operations in the country.
The Director-General of the CAC, Barrister Hussaini Magaji, explained that the deadline was part of the agreement reached with the leading fintech entities during a meeting held with them in Abuja. However, the Commission later extended the deadline by 60 days to ensure full compliance by the entities.
He clarified that the registration of the POS operating entities aligned with the legal requirements and monetary directives set by the Central Bank of Nigeria (CBN).
Meanwhile, some fintech business owners, under the aegis of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) had challenged the Commission’s directive on registration in court, arguing that the mandatory registration is illegal.
