Would you like to receive notifications on latest updates of the following headlines?

PoS Operators to Charge CAC to Court

POSTED ON May 14, 2024 •   BUSINESS      BY Abiodun Saheed Omodara
Point of Sales l Credit: nrsplus l Source: nrsplus.com

Point of Sale operators, who are members of the Association of Mobile Money and Bank Agents in Nigeria, are preparing to take legal action against the mandatory registration requirement imposed by the Corporate Affairs Commission. 

The President of the association, Fasasi Sarafadeen, criticized the directive that PoS operators must register with the CAC, stating that it compelled the association to seek legal redress. 

Sarafadeen argued that the CAC's directive violated the Companies and Allied Matters Act, Laws of the Federation of Nigeria, 2004, which explicitly states that the commission has no authority over individuals who are not operating as a company. 

He emphasized that section 863(1) of the Companies and Allied Matters Act, 2004, prohibits the enforcement of the CAC directive on individual PoS agents operating under their name, and this will be contested as it goes against the law.

He stated that CAMA only requires individuals operating as a company to register. There are two types of POS agents: individuals and non-individuals. Individual agents operate under their own names, like Musa Caroline or Abubakar Audu, and are usually profiled with financial institutions under their names.

Non-individual agents, on the other hand, operate under registered or unregistered business names, such as Wale Ventures or Johnson Enterprises. The Corporate Affairs Commission can enforce the law on this second category of agents because they are required to register their business names by law.

Sarafadeen explained that sub-agents are independent branches of a company already registered with the Corporate Affairs Commission.
The AMMBAN leader suggested that the CAC should concentrate on addressing the high failure rate of registered businesses in Nigeria instead of enforcing regulations on individual POS agents operating under their names.

“The Corporate Affairs Commission should prioritize tackling the alarming failure rate of registered businesses in Nigeria rather than focusing on sub-agents. With over 4.9 million businesses registered, 50 percent of which fail every five years, this should be the main focus.

He observed that the crackdown on agent banking under the guise of CAC registration did not align with President Bola Tinubu's renewed Hope agenda, which emphasizes job creation and opposes policies that lead to unemployment. 

He stated, "We understand that President Bola Ahmed Tinubu does not support any policy that would result in unemployment, and agent banking has generated over 1.9 million jobs in recent years. 

The clampdown in the name of CAC registration contradicts Mr. President's renewed Hope agenda, and we urge the President, the Senate, and the House of Representatives to intervene as they did with the anti-masses policy of cyber security levy. 

CAC should focus on the fact that 50% of registered businesses in Nigeria fail within the first few years, leading to increasing unemployment. Instead of implementing policies that would eliminate entrepreneurs, exacerbate unemployment, and reverse the progress of financial inclusion in Nigeria." 

The Federal Government, through the Corporate Affairs Commission, had set a two-month deadline for Point of Sales companies to register their agents, merchants, and individuals with the commission in accordance with legal requirements and the directives of the Central Bank of Nigeria. 

This decision was made during a meeting between Fintechs and the Registrar-General of CAC, Hussaini Ishaq Magaji, in Abuja.

READ ALSO
FG Urges Project Accountants to Prioritize Integrity in Fund Management
BY Abiodun Saheed Omodara July 25, 2025 0

The Federal Government has cautioned project accountants and financial officers to prioritize care a...

READ ALSO
Electricity Tariffs: Power Firms Push Back Against State Negotiations
BY Abiodun Saheed Omodara July 24, 2025 0

On Wednesday, energy commissioners from all 36 states announced their willingness to engage with pow...

READ ALSO
CBN Maintain Interest Rate at 27.5%
BY Abiodun Saheed Omodara July 22, 2025 0

The Central Bank of Nigeria (CBN) has decided to keep the country's Monetary Policy Rate (MPR) at 27...

READ ALSO
Economic Reforms Slash Nigeria's Debt Servicing from 97% to 50%- Oloyede
BY Abiodun Saheed Omodara July 22, 2025 0

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, revealed th...

READ ALSO
CBN, Private Sector Raise Concerns Over Nigeria Customs' B’Odogwu Digital Clearance System
BY Abiodun Saheed Omodara July 21, 2025 0

The Central Bank of Nigeria (CBN) and the organized private sector have expressed concerns regarding...

READ ALSO
Nigeria-Egypt Trade Surges by 68%, Foreign Minister Highlights Trade Imbalance
BY Abiodun Saheed Omodara July 21, 2025 0

Trade between Nigeria and Egypt has seen a significant increase of 68.45 percent over the past year....

READ ALSO
Enugu State Cuts Electricity Tariff for Band A Customers to N160/kWh, Effective August 1, 2025
BY Abiodun Saheed Omodara July 21, 2025 0

The Enugu State Electricity Regulatory Commission has released a new tariff order for MainPower Elec...

READ ALSO
Naira Weakens 0.14% Despite Initial Gains, Closing at 1,532.34/$
BY Abiodun Saheed Omodara July 21, 2025 0

The naira ended the past week weaker than the week before, depreciating by 0.14% week-on-week to rea...

OUR CHANNELS:

PDP Shifts National Convention to November, Picks Ibadan Amid Internal Power Struggle
BY Abiodun Saheed Omodara July 25, 2025 0

Abuja, Nigeria  – The People’s Democratic Party (PDP) has announced the postpo...


APC Appoints Yilwatda Nentawe as Chairman, Declares 2027 a ‘Done Deal
BY Abiodun Saheed Omodara July 25, 2025 0

Abuja, Nigeria – The National Executive Committee (NEC) of the All Progressives Congress (APC)...


Osun APC, PDP Clash Over Governor Adeleke's Failed Defection Attempt
BY Abiodun Saheed Omodara July 25, 2025 0

The Osun State branches of the All Progressives Congress (APC) and the People’s Democratic Par...


Court Reinstates Benue CJ, Criticizes Alia
BY Abiodun Saheed Omodara July 25, 2025 0

The National Industrial Court in Abuja, on Wednesday, ruled that the Benue State House of Assembly's...


LASG Announces Five Major Road Projects in Alimosho to Be Completed by 2025
BY Abiodun Saheed Omodara July 25, 2025 0

The Lagos State Government has revealed that five significant road projects in the Alimosho Local Go...


Electricity Tariffs: Power Firms Push Back Against State Negotiations
BY Abiodun Saheed Omodara July 25, 2025 0

On Wednesday, energy commissioners from all 36 states announced their willingness to engage with pow...


Two Businessmen Sentenced to Two Years in Prison for Cybercrime
BY Abiodun Saheed Omodara July 25, 2025 0

A Federal High Court located in Ikoyi, Lagos, has sentenced two businesspersons, Emmanuel Nwanze and...


Nigeria Police Force Dismantles Notorious Arms Supply Network Linked to Bandits
BY Abiodun Saheed Omodara July 23, 2025 0

The Nigeria Police Force has successfully intercepted a notorious arms supply network linked to armi...


Maduka Okoye Suspended for Two Months Amid Betting Scandal
BY Abiodun Saheed Omodara July 25, 2025 0

Udinese and Nigerian goalkeeper Maduka Okoye has received a two-month suspension from the Italian Fo...


APC's National Assembly Power Grows to 70 with PDP Senator Defections
BY Abiodun Saheed Omodara July 24, 2025 0

The number of All Progressives Congress (APC) senators in the National Assembly increased to 70 on W...


More Articles

Load more...

Menu