The Corporate Affairs Commission (CAC) has issued a stern warning to Point of Sale (POS) operators across Nigeria who have failed to comply with the registration deadline set on July 7, 2024. Despite the large number of POS operators in the country, many have neglected to formalize their businesses.
While the CAC commended those who have taken steps to register, it expressed concern over the significant number of non-compliant operators. The commission attributed this to potential involvement in unwholesome activities or other undisclosed reasons.
To address the issue, CAC announced plans to collaborate with law enforcement agencies and implement a comprehensive enforcement and sanction framework. This may include shutting down non-compliant businesses and imposing other severe legal consequences.
The CAC’s directive to register POS agents, merchants, and individuals was issued in response to a rise in fraud incidents involving POS terminals and the CBN’s plans to prohibit trading in cryptocurrencies. A report from the Nigeria Inter-Bank Settlement System Plc revealed that POS terminals were involved in a significant portion of fraud cases in 2023.
By ensuring that POS operators are registered, the CAC aims to reduce fraud within the system and combat kidnapping and ransom payments.
