The Corporate Affairs Commission (CAC) has started implementing strict measures, including shutting down Point of Sales (PoS) businesses that did not register by the September 5 deadline.
The Commission stated this in a public notice released on Friday, noting inadequate compliance with its directive.
It said those who decided not to register may engage in “unwholesome activities.”
This development came as the Fintech business owners under the aegis of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) challenged the CAC’s registration directive in court, insisting that the mandatory registration was illegal.
Providing an update on the registration after the deadline, the CAC in the public notice said, “The Corporate Affairs Commission wishes to remind the general public particularly Fintech operators also known as Point of Sale (POS) operators, that the 60-day deadline given in daily newspaper publications of July 7 2024, for the registration of such businesses expired on September 5, 2024.
“The Commission notes inadequate compliance with the directive for formalisation when viewed from the background of the large number of PoS operators in the country. Those who have taken steps to formalise in line with the Commission’s directive are commended for their positive attitudes.
“Recalcitrant operators have refused to adhere to the advice for formalisation due possibly, to engagements in unwholesome activities or for some reasons best known to them.
“We are to make it clear that the Commission is working with law enforcement agencies and other relevant stakeholders to deploy comprehensive enforcement and sanction framework that may include not only possible shutdown but other severe legal consequences.”
The CAC announced in May that PoS agents of major Fintechs in Nigeria including OPay, Palmpay, and Moniepoint, among others, were given deadline of July 7, 2024, to register their business.
Hussaini Magaji, the registrar-general of the CAC, who announced this said this was the agreement with the PoS operators after a meeting in Abuja.
According to Magaji, the registrations are also in line with the legal requirements and the directives of the Central Bank of Nigeria (CBN).
The Commission, however, later extended the deadline by 60 days to September 5, 2024. The extension came with a warning that any operator that failed to meet the new deadline would face prosecution and risk losing the business.
Meanwhile, AMMBAN is insisting that the registration requirements imposed by CAC violated the provision of the Companies and Allied Matters Act, Laws of the Federation of Nigeria, 2004, which “explicitly states that the commission has no jurisdiction over individuals not operating as a company.
According to the General Secretary of AMMBAN, Oluwasegun Elegbede, the matter is already in court and the court has scheduled this September for hearing.
“The court will have to intervene in the interpretation of the quoted section of the CAMA if individuals operating as a sub-agent (likened to a bank branch) must register with CAC,” Elegbede added.
I want to add my address physically but I don’t know how to do it.