Point of Sale (PoS) operators are considering legal action against the Corporate Affairs Commission (CAC) following its directive mandating registration requirements for fintech companies and their agents.
The CAC, in collaboration with financial technology firms (fintechs), set a two-month timeline, ending on July 7, for the registration of their agents, merchants, and individuals with the commission. This move, according to the CAC, is supported by Section 863 (1) of the Companies and Allied Matters Act (CAMA) 2020, as well as the 2013 Central Bank of Nigeria (CBN) guidelines on agent banking, aimed at safeguarding the businesses of fintechs and customers while strengthening the economy.
Elegbede Oluwasegun, the national general secretary of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), revealed the intent of PoS operators to challenge the legality of the CAC’s directive through legal means. Oluwasegun highlighted discrepancies between the CBN policy and CAMA to support AMMBAN’s position, asserting that individuals operating without a company structure are not subject to CAC registration requirements.
According to Oluwasegun, CAMA stipulates that only non-individual agents are obligated to register with the CAC, exempting individuals conducting business under their personal names. He cited CAMA 2022, section 18 (2), to reinforce this argument.
While acknowledging the recognition of both individual and non-individual agents under the CBN policy, Oluwasegun emphasized the legitimacy of individual agents operating under their personal names for business activities beyond PoS operations. He likened this to the operation of a provision store under a personal name, which is not obliged to register with the CAC unless operating under a business name.
Oluwasegun clarified that AMMBAN’s intention to pursue legal recourse is not to incite confrontation but to seek clarity on the legal basis of the CAC’s directive. As law-abiding citizens, the association aims to test the legality of the directive through the judicial process.
