CAC Warns Unregistered PoS Operators as Deadline Passes

The Corporate Affairs Commission (CAC) has reminded Point of Sale (PoS) operators across Nigeria that the deadline for business registration, initially set for July 7, 2024, has now passed as of September 5, 2024.

In a statement released on Friday, the CAC expressed concern over the low level of compliance with this directive, despite the large number of PoS operators in the country.

The Commission acknowledged and commended those operators who have complied with the registration requirements, praising their “positive attitudes” towards formalizing their businesses.

However, CAC also noted with concern that a significant number of operators have yet to adhere to the registration directive.

The statement read: “Recalcitrant operators have refused to adhere to the advice for formalization, possibly due to involvement in unwholesome activities or for reasons best known to them.”

The CAC emphasized that it is collaborating with law enforcement agencies and other relevant stakeholders to establish a comprehensive enforcement and sanction framework.

The measures being considered may include shutting down non-compliant businesses and imposing other severe legal consequences.

“We want to make it clear that the Commission is collaborating with Law Enforcement Agencies and other relevant stakeholders to implement a comprehensive enforcement and sanction framework. This may involve not only potential shutdowns but also other significant legal repercussions,” the statement read.

The Federal Government, through the Corporate Affairs Commission (CAC), had previously set a two-month deadline for PoS operators to register their agents, merchants, and individuals with the commission, in line with legal requirements and directives from the Central Bank of Nigeria (CBN).

This directive was issued in response to a rise in fraud incidents involving PoS terminals and the CBN’s plans to prohibit trading in cryptocurrencies and other virtual currencies.

A report from the Nigeria Inter-Bank Settlement System Plc indicated that PoS terminals were implicated in 26.37 percent of fraud incidents in 2023.

The CAC stated that the registration initiative is aimed at reducing fraud within the system, as well as addressing issues related to kidnapping and ransom payments.