To promote transparency and curb fraudulent activities, the Corporate Affairs Commission (CAC) of Nigeria has mandated all Point of Sale (PoS) agents to register their businesses on or before the 7th of July 2024. This directive was announced on Monday by the Registrar-General of the CAC, Hussaini Ishaq Magaji SAN.

During a press statement released by the commission, Magaji mentioned that this new requirement was finalized after a meeting with PoS operators in Abuja. He stressed that the registration process is not only a legal necessity but also aligns with the directives issued by the Central Bank of Nigeria (CBN).

The decision to enforce registration comes as part of Nigeria’s ongoing efforts to enhance financial inclusion across the country. With over 1.9 million PoS agents operating nationwide, their role in facilitating accessible financial services is crucial. However, the surge in their numbers has also raised concerns about the need for better regulatory oversight to prevent misuse and fraud.

Magaji pointed out that the directive is supported by Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA 2020), and the CBN guidelines on agent banking established in 2013. Section 863(1) provides, “A person or association of persons shall not carry on business in Nigeria as a company, limited liability partnership, limited partnership, or under a business name without being registered under this Act.”

The registration with CAC will provide a structured framework for the operation of PoS services, ensuring that all agents meet the necessary legal and operational standards set forth by the authorities.

Following the press statement, the Registrar-General/CEO of the Corporate Affairs Commission (CAC), Hussaini Ishaq Magaji (SAN), inaugurated a new centre dedicated to the bulk registration of PoS operators at the commission’s FCT Zone 5 Office on Wednesday, 8th May 2024.

As the registration process unfolds, PoS operators are urged to comply with the new regulations to continue their operations without interruptions. The CAC, along with the CBN, will oversee the implementation of this directive to ensure a smooth transition for all stakeholders involved.