In a significant regulatory development, the Federal Government of Nigeria, under the auspices of the Corporate Affairs Commission (CAC), has set a two-month ultimatum for all Point of Sale (PoS) operators across the country to formalize their registrations. This move affects an estimated 1.9 million terminals operated by various merchants and individuals, as per the latest figures from the Nigeria Inter-Bank Settlement System.
The decision was solidified in a recent meeting in Abuja, attended by key figures in the fintech industry and the CAC Registrar-General, Hussaini Ishaq Magaji. This directive aligns with both the legal frameworks set out in the Companies and Allied Matters Act (CAMA 2020) and the Central Bank of Nigeria's 2013 guidelines on agent banking.
Registrar-General Magaji emphasized that this registration is critical not only for enhancing the security and efficiency of financial transactions but also for protecting the economic interests of the fintech sector's clientele. “This registration drive, culminating on July 7, 2024, is essential for fortifying the foundations of our growing digital economy and is not aimed at inconveniencing any stakeholders,” he stated.
This registration initiative comes against a backdrop of increasing security concerns, highlighted by the recent spike in PoS-related fraud cases, which represented over a quarter of all financial frauds last year. Moreover, this regulatory push coincides with broader efforts by the Central Bank of Nigeria to curb illicit financial activities, including a stern stance against cryptocurrency transactions.
The compliance with these regulations is expected to be a collaborative effort, as expressed in a joint statement by the fintech community, who have pledged full support to the CAC’s timeline and objectives.
Further regulatory moves have been noted, including recent restrictions imposed by the CBN on major fintech firms regarding new customer onboarding and cryptocurrency dealings, underscoring the stringent measures being adopted to ensure a secure and compliant financial environment in Nigeria.
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