POS Operators sue FG

As of September 5, 2024, the deadline for Point of Sale (POS) operators to register with the Corporate Affairs Commission (CAC) ends, with the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) challenging the mandate in court.

The federal government had earlier given a two-month deadline for POS operators, including agents, merchants, and individuals, to comply with registration requirements based on directives from the Central Bank of Nigeria (CBN). This move aims to reduce fraud linked to POS terminals, which accounted for 26.37% of fraud incidents in 2023, according to data from the Nigeria Inter-Bank Settlement System (NIBSS).

AMMBAN’s general secretary, Oluwasegun Elegbede, argued that the CAC’s directive conflicts with the Companies and Allied Matters Act (CAMA), which stipulates that the commission has no authority over individuals who are not operating as companies.

Elegbede cited Section 863(1) of CAMA and noted that the association is contesting the legality of CAC’s enforcement in court, with hearings scheduled for later in September.

Elegbede emphasized that every POS operator can already be traced through their BVN, NIN, or SIM card, and that the association, along with law enforcement agencies, is actively addressing fraud. He also raised concerns about the cost of CAC registration, which is around N35,000, noting that many small-scale agents may not be able to afford this amount, potentially hindering their operations. Despite understanding the need for regulation, AMMBAN believes that the court will rule in favor of not placing unnecessary burdens on small businesses and individuals in the POS sector.