POS operatives condemn new directive to register with CAC
The new directive from the Corporate Affairs Commission (CAC) urging every POS agent to register their businesses with the commission, has been termed “an unnecessary duplication of efforts.”
Critics argue that the mandate does not effectively address fraud concerns, which are cited as the primary reason for the registration.
Atanda, the National President, Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), told the News Agency of Nigeria (NAN) on Monday in Abuja that the directive would affect small businesses in the country.
According to him, POS agents have become a crucial part of Nigeria’s financial ecosystem, particularly in underserved areas, where traditional banking services are scarce.
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He further said that these agents facilitated financial transactions and provided vital services to communities that would otherwise be excluded from the formal financial system.
Atanda affirmed that the CAC’s directive is redundant and burdened some POS agents, who were already regulated through financial institutions, with their data profiled by entities like MoniePoint and others.
“Before a POS can be issued, agents must provide their personal and business details, which are stored in a database maintained by the Nigerian Interbank Settlement System (NIBSS).
“This existing regulatory framework ensures that POS agents are already monitored and accountable.
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“The new mandate from CAC, however, requires POS agents to register their businesses with the commission, a move seen as an unnecessary duplication of efforts.
“Critics argue that the mandate does not effectively address fraud concerns, which are cited as the primary reason for the registration requirement.
“Instead, it imposes additional financial and administrative burdens on small business owners, many of whom operate on thin margins,’’ he said.
According to Atanda, POS agents, represented by AMMBAN associations, have taken legal action to challenge the mandate.
They argue that the CAC’s policy is a misplaced priority that fails to recognise the existing regulatory frameworks in place.
The association contends that the policy, unfairly targets their members, and imposes unnecessary costs and bureaucratic hurdles that can drive many small agents out of business.
He said, “The POS and FinTech sectors have been among the most dynamic and rapidly growing parts of Nigeria’s economy, attracting significant foreign direct investment and creating millions of jobs.
“Policies that stifle this growth can have far-reaching consequences for economic development and financial inclusion,’’ Atanda said.
He, therefore, called on policymakers to engage stakeholders in decision-making that would support innovation, growth and guard against fraud.
“By working collaboratively, regulators and industry participants can find solutions that balance oversights with the need to foster a thriving and inclusive financial sector,’’ Atanda said.
Proofreading, editing by Gift Luckson and Hafsat Aleeyu Muye, Journalist and Editor at Neptune Prime.
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