The Corporate Affairs Commission (CAC) has announced it will take severe measures, including shutting down Point of Sales (PoS) businesses that failed to register by the September 5 deadline.
In a public notice released on Friday, the CAC highlighted the lack of compliance with its registration directive, suggesting that businesses that remain unregistered may be involved in “unwholesome activities.”
The move comes as fintech operators, represented by the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), challenge the CAC’s registration mandate in court, arguing that the requirement is illegal.
CAC’s Latest Notice:
“The Corporate Affairs Commission wishes to remind fintech operators, also known as Point of Sale (PoS) operators, that the 60-day deadline announced in our public notice on July 7, 2024, expired on September 5, 2024,” the notice stated.
The CAC acknowledged that while some operators have complied, a significant number have not, raising concerns about their adherence to formalization standards.
“Those who have complied with the directive are to be commended,” the notice continued. “However, those who have not may be engaged in activities that warrant scrutiny. We are collaborating with Law Enforcement Agencies and other stakeholders to implement a comprehensive enforcement framework that could include shutdowns and other severe legal consequences.”
Background:
In May, the CAC set a deadline of July 7, 2024, for PoS agents of major fintechs such as OPay, Palmpay, and Moniepoint to register their businesses. This decision followed a meeting in Abuja between CAC and the PoS operators.
Hussaini Magaji, Registrar-General of the CAC, indicated that the registration aligns with legal requirements and directives from the Central Bank of Nigeria (CBN). The CAC later extended the deadline by 60 days to September 5, 2024, warning of legal action against non-compliant operators.
However, AMMBAN argues that the CAC’s registration requirements infringe on the Companies and Allied Matters Act (CAMA) 2004, which they claim does not grant the CAC jurisdiction over individuals not operating as companies.
AMMBAN’s National General Secretary, Oluwasegun Elegbede, stated that the matter is currently in court, with hearings scheduled for September. “The court will need to determine if individuals operating as sub-agents must register with the CAC,” Elegbede added.
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