Additionally, it promised that from July 7, 2024, security agents would pursue PoS operators that disobey the order to register with the Corporate Affairs Commission.
This was revealed on Wednesday in Abuja during the official opening of the CAC registration of agents and merchants of fintechs, which was presided over by Registrar-General Hussaini Magaji.
A 24-hour support center was also unveiled at the event to assist potential applicants in receiving a timely response to their inquiries and approvals.
On Monday, the government set a two-month registration deadline through the commission.
for PoS operators to register with the commission as corporate entities in accordance with the law and the Central Bank of Nigeria's guidelines.
The goal of the action is to protect businesses and boost the economy. It is supported by Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020, as well as the 2013 CBN recommendations on agent banking.
It also occurred in the context of several fraud instances involving PoS terminals and the Central Bank of Nigeria's intention to cease trading in cryptocurrencies and other virtual currencies.
In 2023, 26.37 percent of fraud instances involved PoS terminals, according per a fraud report published by the Nigeria Inter-Bank Settlement System Plc.
The CBN halted significant fintech companies like Kuda, Opay,
The goal of the action is to protect businesses and boost the economy. It is supported by Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020, as well as the 2013 CBN recommendations on agent banking.
It also occurred in the context of several fraud instances involving PoS terminals and the Central Bank of Nigeria's intention to cease trading in cryptocurrencies and other virtual currencies.
In 2023, 26.37 percent of fraud instances involved PoS terminals, according per a fraud report published by the Nigeria Inter-Bank Settlement System Plc.
The CBN halted significant fintech companies like Kuda, Opay,
Moniepoint and PalmPay from the new customer onboarding process. Subsequently, the fintech companies threatened to block any accounts discovered to be involved in cryptocurrency or virtual currency trading, and they cautioned their users against doing so on their apps.
During his speech, Hussaini reaffirmed the government's commitment to carrying out the mandate in its entirety by offering a fully digitalized service center for simple registration.
He underscored that the registration procedure conforms to legislative mandates and CBN directions requiring merchant, individual, and business entity information to be entered into its database.
He emphasized that defaulters would face sufficient penalties beyond the deadline and issued a further warning that the 60-day window would not be extended.
"We have established a round-the-clock service center to handle inquiries from Point of Salespeople and agents who might choose to register in accordance with the new policy's instructions. There are several employees in the secretariat who are responsible for being available, and some of them also have the task of approving requests. We have provided the essential equipment for the secretariat.
During his speech, Hussaini reaffirmed the government's commitment to carrying out the mandate in its entirety by offering a fully digitalized service center for simple registration.
He underscored that the registration procedure conforms to legislative mandates and CBN directions requiring merchant, individual, and business entity information to be entered into its database.
He emphasized that defaulters would face sufficient penalties beyond the deadline and issued a further warning that the 60-day window would not be extended.
"We have established a round-the-clock service center to handle inquiries from Point of Salespeople and agents who might choose to register in accordance with the new policy's instructions. There are several employees in the secretariat who are responsible for being available, and some of them also have the task of approving requests. We have provided the essential equipment for the secretariat.
"This is to demonstrate to you how seriously the government is addressing this matter, and the center will be available for business around-the-clock. It will be available for public comment and compliance, particularly from PoS operators who are required to register their companies with the commission.
He went on, "We claimed we would provide 24-hour service since we have trained our people to support these operations and they can work from home. With the facilities we've provided, they can work from home to complete the availability and approvals portion. There are still 60 days left, and the deadline is July 7th.
The head of the CAC went on to say that the timeframe was really meant to protect businesses rather than single out any particular group or person.
According to the head of the CAC, "Of course, requiring registration will cut down on fraud and criminal activity. The commission hosts data, so if a crime is committed anyplace, the authorities will need to get in touch with us to identify the perpetrators and the individuals running the business. However, if they are The whole point of registering is that without it, we are powerless.
The head of the CAC went on to say that the timeframe was really meant to protect businesses rather than single out any particular group or person.
According to the head of the CAC, "Of course, requiring registration will cut down on fraud and criminal activity. The commission hosts data, so if a crime is committed anyplace, the authorities will need to get in touch with us to identify the perpetrators and the individuals running the business. However, if they are The whole point of registering is that without it, we are powerless.
"We have experienced instances when a ransom is being paid through a proof of stake terminal and significant fraud, but following registration, we can furnish the government with the identity of the individuals behind the organization in the event of any issues. This is a positive step forward for the nation since we will get the photo and other pertinent data.
He emphasized, "After the deadline, we would go after defaulters. Security agents will go after you if you have been identified as a criminal; some of them are already being pursued by the security agencies."
He clarified the advantages of registering and emphasized that they extend beyond taxation.
should include financing availability, legality, and adherence to rules and regulations.
"Anyone who wishes to conduct business in the nation is required by law to have a legitimate business, and in order for your business to be legitimate, you have to register. Whether you are operating as an individual or an agent, you must register with us."The owners of the POS terminals are operating, and we are currently putting some of the Company and Allied Matters Act's provisions into effect. We've been working on this since December, so the extension until July gives them an extra six months. In the interest of their business, we have given them a timeframe.
"Anyone who wishes to conduct business in the nation is required by law to have a legitimate business, and in order for your business to be legitimate, you have to register. Whether you are operating as an individual or an agent, you must register with us."The owners of the POS terminals are operating, and we are currently putting some of the Company and Allied Matters Act's provisions into effect. We've been working on this since December, so the extension until July gives them an extra six months. In the interest of their business, we have given them a timeframe.
PoS agents have responded to the directive requesting them to register with the CAC in the meantime.
While some agents supported the CBN, a large number of them stated that it would put additional strain on the operators, particularly those in rural areas.
In a response on his accounts, Sarafa Fasasi, the National President of the Association of Mobile Money and Bank Agents in Nigeria, stated that the directive was unclear.
The present CBN agent banking laws let people to be onboarded as agents under the sub-agent category, which is why the message perplexed me. Presently, Nigeria has more than 1.9 million agents, of which more than 70% are sub-agents working through agent networks or super agency arrangements without having registered firms. They are the financial inclusion channel that is most invasive. Right now, we desire to remove them using the CAC registration?" he asked.
According to Fasasi, payment security should be achieved by the country without having to reverse the 74% financial inclusion rate.
Regarding the suspension of leading service providers—mostly non-banks like Opay, Palmpay, Moniepoint, Kuda Bank, and others—from creating new accounts because of purported foreign exchange and cryptocurrency transactions, he made the following argument: "It should be remembered that prior to the Binance scandals, FX/crypto transactions occasionally ended in multiple accounts or wallets across all service providers, bank and non-bank. Thus, in order to be fair, all service providers might be at fault and ought to be suspended.
"It is unimaginable to stop all commercial banks from creating new accounts due to transactions that occurred before regulations were in place."
Likewise, a Point-of-Sale representative, Ogunfowokan Temitope, who lives in Surulere, Lagos State's Ilasa neighborhood, claimed the action was unjust to the agents.
"It is unfair because most PoS agents only have a small amount of money," the woman remarked. Some even took out loans to launch their businesses. How are these folks going to manage, and how much does it cost to start a business these days?"
Victor Olojo, the association's recently elected president, supported the CBN's action, arguing that it was the necessary step toward increased security and standardization.
"The CBN needs to make sure the financial system is well galvanized because it is a financial matter," he stated. People are selling and using PoS terminals these days.
They shouldn't even be in charge of any business.
Additionally, by eliminating them, this action would free up those capable of concentrating on the business, improving Nigeria's situation.
He added that millions of unregistered PoS agents are being regularized and that it is a benefit for the CAC.
"We would start creating an individual business identity or identify for each PoS agent. This implies that all newly created PoS accounts will now have the appropriate Know-Your-Customer tier 3 standard, meaning that your account will have all required verifications inserted in.
"This will prevent agents from engaging in fraudulent activities since it will be simple to identify and apprehend the PoS agent in the event of a problem," he continued.
Olojo's claim was supported by a PoS agent who was situated Sunday Samuel, a resident of Lagos State's Berger neighborhood, praised the action for trying to standardize agent businesses.
"The change will assist the agents in standardizing their operations, but not everyone will comprehend it from this standpoint," he remarked.
Some agents in remote areas do not know the significance of the Corporate Affairs Commission or what it stands for. As a result, people may find it challenging and stressful to go through the registration process. Nonetheless, from a typical perspective, registering a firm is a wise action.
However, Taiwo Shobowale, another agent stationed in Ogun State's Mowe-Ibafo area, contended that the new The majority of operators are unaware of the implications of being registered with the CAC, and these agents view it as a daily source of money, therefore the directive would have an impact on them.
The government wants to be involved, therefore providing financial services can be extremely delicate. However, most agents do not view this firm as an entity. Due to insufficient KYC regulations and improper documentation, fraudulent transactions are rarely tracked down in this already saturated industry.
Additionally, considering this is a project that should last the remainder of the year, the notice is abrupt and the time range provided is short. There would be delays as a result of the rush slowing down the commission's system. Shobowale included.
While some agents supported the CBN, a large number of them stated that it would put additional strain on the operators, particularly those in rural areas.
In a response on his accounts, Sarafa Fasasi, the National President of the Association of Mobile Money and Bank Agents in Nigeria, stated that the directive was unclear.
The present CBN agent banking laws let people to be onboarded as agents under the sub-agent category, which is why the message perplexed me. Presently, Nigeria has more than 1.9 million agents, of which more than 70% are sub-agents working through agent networks or super agency arrangements without having registered firms. They are the financial inclusion channel that is most invasive. Right now, we desire to remove them using the CAC registration?" he asked.
According to Fasasi, payment security should be achieved by the country without having to reverse the 74% financial inclusion rate.
Regarding the suspension of leading service providers—mostly non-banks like Opay, Palmpay, Moniepoint, Kuda Bank, and others—from creating new accounts because of purported foreign exchange and cryptocurrency transactions, he made the following argument: "It should be remembered that prior to the Binance scandals, FX/crypto transactions occasionally ended in multiple accounts or wallets across all service providers, bank and non-bank. Thus, in order to be fair, all service providers might be at fault and ought to be suspended.
"It is unimaginable to stop all commercial banks from creating new accounts due to transactions that occurred before regulations were in place."
Likewise, a Point-of-Sale representative, Ogunfowokan Temitope, who lives in Surulere, Lagos State's Ilasa neighborhood, claimed the action was unjust to the agents.
"It is unfair because most PoS agents only have a small amount of money," the woman remarked. Some even took out loans to launch their businesses. How are these folks going to manage, and how much does it cost to start a business these days?"
Victor Olojo, the association's recently elected president, supported the CBN's action, arguing that it was the necessary step toward increased security and standardization.
"The CBN needs to make sure the financial system is well galvanized because it is a financial matter," he stated. People are selling and using PoS terminals these days.
They shouldn't even be in charge of any business.
Additionally, by eliminating them, this action would free up those capable of concentrating on the business, improving Nigeria's situation.
He added that millions of unregistered PoS agents are being regularized and that it is a benefit for the CAC.
"We would start creating an individual business identity or identify for each PoS agent. This implies that all newly created PoS accounts will now have the appropriate Know-Your-Customer tier 3 standard, meaning that your account will have all required verifications inserted in.
"This will prevent agents from engaging in fraudulent activities since it will be simple to identify and apprehend the PoS agent in the event of a problem," he continued.
Olojo's claim was supported by a PoS agent who was situated Sunday Samuel, a resident of Lagos State's Berger neighborhood, praised the action for trying to standardize agent businesses.
"The change will assist the agents in standardizing their operations, but not everyone will comprehend it from this standpoint," he remarked.
Some agents in remote areas do not know the significance of the Corporate Affairs Commission or what it stands for. As a result, people may find it challenging and stressful to go through the registration process. Nonetheless, from a typical perspective, registering a firm is a wise action.
However, Taiwo Shobowale, another agent stationed in Ogun State's Mowe-Ibafo area, contended that the new The majority of operators are unaware of the implications of being registered with the CAC, and these agents view it as a daily source of money, therefore the directive would have an impact on them.
The government wants to be involved, therefore providing financial services can be extremely delicate. However, most agents do not view this firm as an entity. Due to insufficient KYC regulations and improper documentation, fraudulent transactions are rarely tracked down in this already saturated industry.
Additionally, considering this is a project that should last the remainder of the year, the notice is abrupt and the time range provided is short. There would be delays as a result of the rush slowing down the commission's system. Shobowale included.
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