Registration Deadline Will Not Be Extended,” Says Hussaini Magaji as Government Cracks Down on Illegal PoS Operators

In a bid to tackle rising incidents of kidnapping and fraud, the Federal Government has announced stringent measures against unregistered Point-of-Sale (PoS) operators across the country. The move, which requires PoS operators to register with the Corporate Affairs Commission (CAC) by July 7, 2024, aims to enhance security and accountability in electronic transactions.

Speaking at the formal launch of the CAC registration for fintech agents and merchants in Abuja, the Registrar-General, Hussaini Magaji, emphasized the importance of compliance with the directive. He underscored the government’s commitment to providing a fully digitized service center to facilitate seamless registration and ensure prompt response to enquiries and approvals.

The decision to mandate PoS registration aligns with legal requirements outlined in the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria’s guidelines on agent banking. Notably, PoS terminals accounted for a significant portion of fraud incidents in 2023, according to a report by the Nigeria Inter-Bank Settlement System Plc.

Hussaini Magaji reiterated that the registration deadline of 60 days would not be extended and warned of strict enforcement measures against defaulters. He emphasized that the initiative aims to safeguard businesses, enhance financial inclusion, and combat fraudulent practices.

In response to the directive, PoS agents expressed mixed reactions. While some supported the move as necessary for standardization and security enhancement, others raised concerns about the financial burden and operational challenges, particularly in rural communities.

Sarafa Fasasi, National President of the Association of Mobile Money and Bank Agents in Nigeria, expressed confusion over the directive, questioning its impact on financial inclusion efforts. However, Victor Olojo, the immediate past president of the association, endorsed the move, highlighting its potential to weed out unregistered operators and enhance accountability.

Despite differing opinions among PoS operators, the government’s determination to enforce registration underscores its commitment to tackling financial crimes and promoting a secure electronic payment ecosystem.