The Federal Government, through the Corporate Affairs Commission (CAC), has mandated Point of Sales (POS) companies to register their agents, merchants, and individuals within a two-month deadline. This directive aligns with legal requirements and the directives of the Central Bank of Nigeria (CBN).
The agreement was reached during a meeting between Fintechs and the Registrar-General of CAC, Hussaini Ishaq Magaji, in Abuja. Magaji emphasized that this measure aims to safeguard the businesses of Fintech customers and strengthen the economy. He cited Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020, as well as the 2013 CBN guidelines on agent banking, to support this action.
The deadline for registration, expiring on July 7, 2024, is not targeted at specific groups or individuals but is genuinely aimed at protecting businesses. The Nigeria Inter-Bank Settlement System reports over 1.9 million POS terminals deployed nationwide by merchants and individuals.
This directive comes amidst concerns over fraud incidents involving POS terminals and the CBN’s plans to restrict trading in cryptocurrency or virtual currency. POS terminals accounted for 26.37% of fraud incidents in 2023, according to a report by the Nigeria Inter-Bank Settlement System Plc.
Last week, major fintech firms like Kuda, Opay, PalmPay, and Moniepoint were stopped from onboarding new customers by the CBN. They were instructed to warn customers against cryptocurrency trading on their apps, with threats to block accounts engaging in such activities.
This move by the CBN follows an ongoing audit of fintechs’ Know-Your-Customer process, amid concerns about money laundering and terrorism financing. Additionally, the Economic and Financial Crimes Commission obtained a court order to freeze over 1,146 bank accounts allegedly involved in illegal foreign exchange transactions.
In response, OPay announced strict measures against customers violating its policy, which aligns with the CBN’s stance on cryptocurrency trading. Speakers from the fintech industry pledged collaboration with the CAC to ensure the directive’s smooth implementation. They emphasized the need for adequate and collective sensitization to achieve the desired results.
