Following recent directives from the Central Bank of Nigeria (CBN) and the Corporate Affairs Commission (CAC) mandating PoS agent registration, the National Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) is escalating its opposition. The association is preparing to take legal action against the CAC, arguing that the requirement for individual PoS agents to register as businesses exceeds the CAC’s legal authority and threatens the livelihoods of millions.
The government’s push for mandatory registration arose following reports of increased fraud associated with PoS transactions. A recent report by the Nigeria Inter-Bank Settlement System Plc (NIBSS) revealed that PoS terminals accounted for 26.37% of fraud incidents in 2023. In response, the CBN issued a directive instructing all PoS operators, whether individuals or businesses, to register with the CAC.
This directive was further amplified by the CAC, which reiterated the registration deadline of July 7, 2024, and emphasised that non-compliance could result in significant penalties. The move was framed as essential for protecting consumers and bolstering economic growth.
AMMBAN, however, disputes the interpretation of the law, arguing that the CAC’s mandate oversteps its bounds. The association contends that the Companies and Allied Matters Act (CAMA) only requires registration for individuals operating as companies, not those working as independent agents.
AMMBAN president, Fasasi Sarafadeen, stated, “We shall challenge it legally. The court will have to intervene in the interpretation of the quoted section of CAMA.” He emphasized the distinction between individual agents, who operate under their own names, and non-individual agents, who use business names.
Beyond the legal dispute, AMMBAN is raising concerns about the potential impact of this directive on the livelihoods of millions of Nigerians who rely on PoS operations for income. They also warn that this could negatively impact financial inclusion efforts in Nigeria, particularly in rural and underserved areas where PoS agents have played a crucial role in expanding access to financial services.
The impending lawsuit echoes a similar public outcry against a recently introduced cybersecurity levy on electronic transactions. Both instances reflect a growing tension between government efforts to regulate the financial sector and concerns over the impact of such regulations on individuals and businesses.
As the legal battle unfolds, all eyes will be on the courts to interpret the relevant laws and determine the future of PoS agent registration in Nigeria. The outcome will likely have significant implications for the fintech industry and the broader financial landscape of the country.
