The Corporate Affairs Commission (CAC) of Nigeria has issued a reminder to Point of Sale (PoS) operators regarding a critical compliance deadline. Initially set on July 7, 2024, the deadline for business registration for PoS operators has passed, with the expiration date being September 5, 2024.
In a statement released on Friday, the CAC expressed concerns about the lack of widespread compliance with the registration directive, despite the substantial number of PoS operators throughout Nigeria. The Commission acknowledged and commended those operators who have already registered their businesses, highlighting their positive attitudes towards compliance.
However, the CAC also noted a significant non-compliance rate and suggested that the reluctance to register might be due to the involvement of some operators in questionable activities or other undisclosed reasons. To address this issue, the CAC has indicated that it will work closely with law enforcement agencies and other relevant stakeholders to enforce compliance. This enforcement may involve severe measures, including potential business shutdowns and other legal repercussions for non-compliant operators.
The registration directive was initially put in place by the Nigerian Government, through the CAC, to address growing concerns about fraud linked to PoS terminals and to align with the Central Bank of Nigeria’s (CBN) regulatory measures. This move also responds to the rise in fraud incidents involving PoS terminals, which were involved in 26.37% of such incidents in 2023, according to the Nigeria Inter-Bank Settlement System Plc.
The CAC’s registration initiative aims not only to reduce fraud but also to tackle issues related to kidnapping and ransom payments.
The Commission’s enforcement actions will be critical in ensuring that all PoS operators comply with the legal requirements, thereby fostering a more secure and regulated financial environment.
