CAC registration: PoS operators sue government as deadline ends yesterday​

POS operators in Nigeria, under the umbrella of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), have taken legal action against the government of Nigeria following the expiration of the deadline of Thursday, September 5, 2024, for them to register their businesses with the Corporate Affairs Commission (CAC).

The National General Secretary of AMMBAN, Oluwasegun Elegbede told the Punch that the union approached the court because the registration decree violates the provision of the Companies and Allied Matters Act of the Federation of Nigeria, 2004.

“The matter is already in court and the court has scheduled this September for hearing. The court will have to intervene in interpreting the quoted section of the CAMA if individuals operating as a sub-agent (likened to a bank branch) must register with CAC,” Elegbede added.

Recall that we reported in June that the President of the association, Fasasi Atanda, an interview faulted the directive mandating PoS operators to register with the CAC, saying the move has forced the association to go to court to seek redress.

Mr Atanda faulted the CBN’s attempt to regulate the mobile money and banking agency space, noting that the CAC cannot regulate an industry it does not understand. He noted that the industry is focused on financial inclusion and that with large swaths of the country lacking bank branches, the apex bank’s move would have far-reaching negative impacts on people.

“What people see as just POS is an industry. An agenda on financial inclusion. Over 300 local governments in Nigeria are without bank branches. And the largest transactions are happening in the informal sector in Nigeria. And this population are excluded. So the POS agents you’re seeing are meant to bridge the gap. So the CAC is trying to destroy and attack financial inclusion in Nigeria and it is offending a lot of stakeholders,” he said.

The interview happened weeks after the Corporate Affairs Commission formally commenced an enrollment exercise for Point of Sale (PoS) agents and operators in Nigeria. Registrar-General of the CAC, Hussaini Magaji said the exercise was not designed to tax POS operators but also to protect Nigerians against fraud and check banditry.

Noting that fraud in the system is multifaceted and comprises human and technical aspects, the AMMBAN president, Atanda said the association is already working with the security agencies and has launched a Joint Tax Force in Lagos.

According to him, the task force has all security officers on the same table so that if there are red flags, they would see red flag transactions and we are aware of where they are doing cash out for bandits.

He also claimed that AMMBAN has set up a control map to have visibility to all transactions happening on the terminals. He said all fintechs are working with the association on it.

Mr Attanda also accused the CAC of trying to deprive POS operators of their livelihoods. He noted that the industry has created over two million jobs in Nigeria over the last couple of years, 40 per cent of that number being agent bankers.

Describing how much of an impact the industry has had, he noted that the worth of the industry is about N13 trillion, having attracted the largest foreign investment into Nigeria in 2022. “A lot of us are filing returns to the CAC so the agency knows how much we turn over in taxes”, he said.

He concluded that the association has introduced an identity card that can match a POS agent with their device. He said there was something called the terminal identity number (TID) which is a unique identity number. and the identity card displays this unique number.

“We have observed that all the POS agents are operating outside the legal regulation. Like someone under an umbrella is not located at a physical location. So we are educating the populace to use POS agents as physical locations with signage,” he said.

CAC extended the registration deadline for PoS operators from June to September

Following the outcry by the PoS operators association in June, the Corporate Affairs Commission (CAC) has announced an extension of the registration deadline for Fintech Operators, specifically Point of Sales (PoS) Operators, from July 7, 2024, to September 5, 2024.

In a public notice dated July 7, 2024, the CAC highlighted the extension aims to accommodate operators, especially those in remote areas who have faced network challenges during the registration.

This is to give sufficient time to Operators particularly those in remote areas who might have encountered network challenges to so register and continue with their businesses.Corporate Affairs Commission (CAC) in a July 2024 notice

The CAC also issued a stern warning to operators who fail to register within the new deadline.

“Operators who fail or refuse to register at the end of the extended deadline run the risk of losing such businesses and prosecution for aiding and abetting criminal activities,” the notice warned.

This decision, at that time, provided an additional 60 days for the registration of sole Agents, Super Agents, and Agents. The CAC is yet to provide details about the compliance rate by PoS operators across the country.

The post CAC registration: PoS operators sue government as deadline ends yesterday first appeared on Technext.

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POS operators in Nigeria, under the umbrella of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), have taken legal action against the government of Nigeria following the expiration of the deadline of Thursday, September 5, 2024, for them to register their businesses with the Corporate Affairs Commission (CAC).

The National General Secretary of AMMBAN, Oluwasegun Elegbede told the Punch that the union approached the court because the registration decree violates the provision of the Companies and Allied Matters Act of the Federation of Nigeria, 2004.

“The matter is already in court and the court has scheduled this September for hearing. The court will have to intervene in interpreting the quoted section of the CAMA if individuals operating as a sub-agent (likened to a bank branch) must register with CAC,” Elegbede added.

Recall that we reported in June that the President of the association, Fasasi Atanda, an interview faulted the directive mandating PoS operators to register with the CAC, saying the move has forced the association to go to court to seek redress.

Mr Atanda faulted the CBN’s attempt to regulate the mobile money and banking agency space, noting that the CAC cannot regulate an industry it does not understand. He noted that the industry is focused on financial inclusion and that with large swaths of the country lacking bank branches, the apex bank’s move would have far-reaching negative impacts on people.

“What people see as just POS is an industry. An agenda on financial inclusion. Over 300 local governments in Nigeria are without bank branches. And the largest transactions are happening in the informal sector in Nigeria. And this population are excluded. So the POS agents you’re seeing are meant to bridge the gap. So the CAC is trying to destroy and attack financial inclusion in Nigeria and it is offending a lot of stakeholders,” he said.

The interview happened weeks after the Corporate Affairs Commission formally commenced an enrollment exercise for Point of Sale (PoS) agents and operators in Nigeria. Registrar-General of the CAC, Hussaini Magaji said the exercise was not designed to tax POS operators but also to protect Nigerians against fraud and check banditry.

Noting that fraud in the system is multifaceted and comprises human and technical aspects, the AMMBAN president, Atanda said the association is already working with the security agencies and has launched a Joint Tax Force in Lagos.

According to him, the task force has all security officers on the same table so that if there are red flags, they would see red flag transactions and we are aware of where they are doing cash out for bandits.

He also claimed that AMMBAN has set up a control map to have visibility to all transactions happening on the terminals. He said all fintechs are working with the association on it.

Mr Attanda also accused the CAC of trying to deprive POS operators of their livelihoods. He noted that the industry has created over two million jobs in Nigeria over the last couple of years, 40 per cent of that number being agent bankers.

Describing how much of an impact the industry has had, he noted that the worth of the industry is about N13 trillion, having attracted the largest foreign investment into Nigeria in 2022. “A lot of us are filing returns to the CAC so the agency knows how much we turn over in taxes”, he said.

He concluded that the association has introduced an identity card that can match a POS agent with their device. He said there was something called the terminal identity number (TID) which is a unique identity number. and the identity card displays this unique number.

“We have observed that all the POS agents are operating outside the legal regulation. Like someone under an umbrella is not located at a physical location. So we are educating the populace to use POS agents as physical locations with signage,” he said.

CAC extended the registration deadline for PoS operators from June to September

Following the outcry by the PoS operators association in June, the Corporate Affairs Commission (CAC) has announced an extension of the registration deadline for Fintech Operators, specifically Point of Sales (PoS) Operators, from July 7, 2024, to September 5, 2024.

In a public notice dated July 7, 2024, the CAC highlighted the extension aims to accommodate operators, especially those in remote areas who have faced network challenges during the registration.

This is to give sufficient time to Operators particularly those in remote areas who might have encountered network challenges to so register and continue with their businesses.Corporate Affairs Commission (CAC) in a July 2024 notice

The CAC also issued a stern warning to operators who fail to register within the new deadline.

“Operators who fail or refuse to register at the end of the extended deadline run the risk of losing such businesses and prosecution for aiding and abetting criminal activities,” the notice warned.

This decision, at that time, provided an additional 60 days for the registration of sole Agents, Super Agents, and Agents. The CAC is yet to provide details about the compliance rate by PoS operators across the country.

The post CAC registration: PoS operators sue government as deadline ends yesterday first appeared on Technext.

 POS operators in Nigeria, under the umbrella of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN),…
The post CAC registration: PoS operators sue government as deadline ends yesterday first appeared on Technext.  

POS operators in Nigeria, under the umbrella of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), have taken legal action against the government of Nigeria following the expiration of the deadline of Thursday, September 5, 2024, for them to register their businesses with the Corporate Affairs Commission (CAC).

The National General Secretary of AMMBAN, Oluwasegun Elegbede told the Punch that the union approached the court because the registration decree violates the provision of the Companies and Allied Matters Act of the Federation of Nigeria, 2004.

“The matter is already in court and the court has scheduled this September for hearing. The court will have to intervene in interpreting the quoted section of the CAMA if individuals operating as a sub-agent (likened to a bank branch) must register with CAC,” Elegbede added.

Recall that we reported in June that the President of the association, Fasasi Atanda, an interview faulted the directive mandating PoS operators to register with the CAC, saying the move has forced the association to go to court to seek redress.

Mr Atanda faulted the CBN’s attempt to regulate the mobile money and banking agency space, noting that the CAC cannot regulate an industry it does not understand. He noted that the industry is focused on financial inclusion and that with large swaths of the country lacking bank branches, the apex bank’s move would have far-reaching negative impacts on people.

“What people see as just POS is an industry. An agenda on financial inclusion. Over 300 local governments in Nigeria are without bank branches. And the largest transactions are happening in the informal sector in Nigeria. And this population are excluded. So the POS agents you’re seeing are meant to bridge the gap. So the CAC is trying to destroy and attack financial inclusion in Nigeria and it is offending a lot of stakeholders,” he said.

The interview happened weeks after the Corporate Affairs Commission formally commenced an enrollment exercise for Point of Sale (PoS) agents and operators in Nigeria. Registrar-General of the CAC, Hussaini Magaji said the exercise was not designed to tax POS operators but also to protect Nigerians against fraud and check banditry.

Noting that fraud in the system is multifaceted and comprises human and technical aspects, the AMMBAN president, Atanda said the association is already working with the security agencies and has launched a Joint Tax Force in Lagos.

According to him, the task force has all security officers on the same table so that if there are red flags, they would see red flag transactions and we are aware of where they are doing cash out for bandits.

He also claimed that AMMBAN has set up a control map to have visibility to all transactions happening on the terminals. He said all fintechs are working with the association on it.

Mr Attanda also accused the CAC of trying to deprive POS operators of their livelihoods. He noted that the industry has created over two million jobs in Nigeria over the last couple of years, 40 per cent of that number being agent bankers.

Describing how much of an impact the industry has had, he noted that the worth of the industry is about N13 trillion, having attracted the largest foreign investment into Nigeria in 2022. “A lot of us are filing returns to the CAC so the agency knows how much we turn over in taxes”, he said.

He concluded that the association has introduced an identity card that can match a POS agent with their device. He said there was something called the terminal identity number (TID) which is a unique identity number. and the identity card displays this unique number.

“We have observed that all the POS agents are operating outside the legal regulation. Like someone under an umbrella is not located at a physical location. So we are educating the populace to use POS agents as physical locations with signage,” he said.

CAC extended the registration deadline for PoS operators from June to September

Following the outcry by the PoS operators association in June, the Corporate Affairs Commission (CAC) has announced an extension of the registration deadline for Fintech Operators, specifically Point of Sales (PoS) Operators, from July 7, 2024, to September 5, 2024.

In a public notice dated July 7, 2024, the CAC highlighted the extension aims to accommodate operators, especially those in remote areas who have faced network challenges during the registration.

This is to give sufficient time to Operators particularly those in remote areas who might have encountered network challenges to so register and continue with their businesses.Corporate Affairs Commission (CAC) in a July 2024 notice

The CAC also issued a stern warning to operators who fail to register within the new deadline.

“Operators who fail or refuse to register at the end of the extended deadline run the risk of losing such businesses and prosecution for aiding and abetting criminal activities,” the notice warned.

This decision, at that time, provided an additional 60 days for the registration of sole Agents, Super Agents, and Agents. The CAC is yet to provide details about the compliance rate by PoS operators across the country.