The Nigerian Point-of-Sale (POS) operators are racing against time to register with the Corporate Affairs Commission (CAC) by July 7th. This mandatory enrollment, announced just last week, aims to combat rising fraud and improve security within the financial sector.
To simplify the process, the CAC launched a dedicated service center with extended hours to handle registration inquiries and approvals.
We’re committed to making this process as smooth as possible for PoS operators.
CAC Registrar-General Hussaini Magaji.
While some operators might hold on to the idea of increased scrutiny, Magaji emphasizes the long-term benefits. Registration unlocks access to loans, enhances business legitimacy, and fosters regulatory compliance.
For those tempted to skip registration, beware. Magaji warns that security agencies will actively pursue non-compliant operators after the deadline. This move comes after a 2023 report by the Nigeria Inter-Bank Settlement System Plc revealed a concerning statistic: PoS terminals were responsible for nearly 27% of all fraud incidents that year.
While some industry experts applaud the CBN’s efforts to curb fraud, others express concern about the impact on rural communities. Critics worry that smaller, less tech-savvy operators might struggle to navigate the registration process.
This move follows recent actions by the Central Bank of Nigeria (CBN), including audits of Know-Your-Customer (KYC) practices at major fintech firms and a crackdown on cryptocurrency trading through these platforms.
The debate continues, but one thing’s for sure: the Nigerian fintech industry is undergoing a major shift for better, safe, and secured transactions. Only time will tell how this mandatory registration will impact the future of POS operations in the country.