The Corporate Affairs Commission (CAC) has extended the deadline for Point of Sales (PoS) operators in Nigeria to register their businesses by 60 days. The new deadline is now September 5, 2024, as opposed to the initial deadline of July 7. This extension was announced by the Commission in a statement issued on Saturday.
The CAC emphasized that failure to meet the new deadline will result in prosecution and the potential loss of business operations for non-compliant operators.
In the announcement, the CAC stated:
“The Corporate Affairs Commission wishes to notify Fintech Operators also known as Point of Sales (POS) Operators that the initial deadline of 7th July 2024 given for the registration of sole Agents, Super Agents, and Agents has been extended for a period of sixty days beginning from 7th July 2024 to the 5th September 2024.
“This is to give sufficient time to Operators, particularly those in remote areas who might have encountered network challenges to so register and continue with their businesses.
“Operators who fail or refuse to register at the end of the extended deadline run the risk of losing such businesses and prosecution for aiding and abetting criminal activities.”
Registration Challenges and Government Intervention
Since the initial deadline was announced in May, some PoS operators have reported difficulties in completing their registrations on the Commission’s portal. This prompted Lagos State Governor, Mr. Babajide Sanwo-Olu, to appeal to the Commission to simplify the registration process.
During a courtesy call on Thursday by the Registrar-General of the CAC, Mr. Hussaini Magaji, at Alausa, Ikeja, the Governor, represented by his Deputy, Dr. Obafemi Hamzat, suggested adopting a model similar to the state tax card. This model provides a database for managing infrastructure needs without burdening businesses.
Governor Sanwo-Olu expressed the state government’s willingness to collaborate with the CAC to ensure seamless business registration and emphasized the need for more public awareness to change the perception that registering with the CAC is difficult.
In May, the CAC announced that PoS agents of major fintechs in Nigeria, including OPay, Palmpay, and Moniepoint, were given a deadline of July 7, 2024, to register their businesses. This announcement followed an agreement between the CAC and PoS operators after a meeting in Abuja.
The Registrar-General of the CAC, Hussaini Magaji, noted that the registrations are in line with legal requirements and directives from the Central Bank of Nigeria (CBN). He cited Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020 and the 2013 CBN guidelines on agent banking as the legal basis for the mandate.
Magaji stated that the registration aims to safeguard the businesses of fintechs and their customers, as well as to strengthen the economy.
However, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) recently condemned the mandated registration, describing it as an attempt to tax more Nigerians to generate revenue for the government.
