- Corporate Affairs Commission issued a 60-day deadline for point-of-sale operators to register their businesses
- Subsequently, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) challenged the Corporate Affairs Commission’s registration directive in court, citing legal violations
- With the 60-day registration deadline having elapsed, the Commission has announced plans to collaborate with law enforcement to shut down unregistered PoS businesses
In a recent public notice, the Corporate Affairs Commission (CAC) has issued a stern warning for unregistered PoS operators, including potential shutdowns and other legal consequences, following the expiration of its 60-day deadline on September 5.
The Commission noted a poor level of compliance with its registration directive and raised concerns that those who do not register could be involved in “unwholesome activities” in the public notice released on Friday, September 6.
CAC issues public notice to PoS operators
“The Corporate Affairs Commission wishes to remind the general public particularly Fintech operators also known as Point of Sale (POS) operators, that the 60-day deadline given in daily newspaper publications of July 7 2024, for the registration of such businesses expired on September 5, 2024.
“The Commission notes inadequate compliance with the directive for formalisation when viewed from the background of the large number of POS operators in the country. Those who have taken steps to formalise in line with the Commission’s directive are commended for their positive attitudes.
“Recalcitrant operators have refused to adhere to the advice for formalisation due possibly, to engagements in unwholesome activities or for some reasons best known to them.
“We are to make it clear that the Commission is working with Law Enforcement Agencies and other relevant stakeholders to deploy comprehensive enforcement and sanction framework that may include not only possible shutdown but other severe legal Consequences.”
AMMBAN challenges order in court
Recall that CAC announced a 60-day deadline for PoS operators to register their businesses on July 7, 2024, which expired on Thursday, September 5, 2024.
Subsequently, fintech business owners, through the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) contested the CAC’s registration order in court, maintaining that the mandatory registration is not legal.
Court hearings scheduled for September
According to AMMBAN, the CAC’s registration requirements infringe upon the Companies and Allied Matters Act, Laws of the Federation of Nigeria, 2004, which "unequivocally states that the commission does not have jurisdiction over individuals not operating as companies.
Oluwasegun Elegbede, the national general secretary of AMMBAN, confirmed that the case was already in court, with hearings scheduled to take place this September.
10 lucrative business ideas you can easily try out in Nigeria
Meanwhile, TheRadar earlier reported that the Point of Sale (POS) business is a great business idea as more Nigerians have switched from using Automated Teller Machines (ATM) to using POS for cash withdrawals and other financial transactions.
TheRadar compiled a list of 10 lucrative business ideas you can start easily in Nigeria today with little or no capital.