The Federal Government has announced that failure to adhere to the mandatory CAC registration for Point-of-Sale (PoS) operators across Nigeria, will result in rigorous enforcement measures by security agencies after the July 7, 2024 deadline. This is aimed at reducing kidnapping incidents and aiding in the apprehension of ransom recipients.
During the formal launch in Abuja, Hussaini Magaji, CAC’s Registrar-General, introduced mandatory registration for fintech agents and merchants. This initiative coincided with the unveiling of a 24-hour service center, aimed at simplifying registration processes. Magaji emphasized the importance of aligning with legal frameworks and CBN directives. Consequently, the government’s commitment to enhancing financial security was reiterated through these measures.
Enforced via CAMA 2020 and CBN guidelines, this decision aims to bolster the economy by protecting businesses from PoS fraud.
In 2023, PoS terminals constituted 25%+ of fraud cases, urging regulatory intervention, according to NIBSS’s report. Furthermore, the Central Bank of Nigeria’s move to halt cryptocurrency trading amplifies the government’s commitment to financial security.
Magaji reiterated the government’s determination to uphold the registration mandate, emphasizing its alignment with both legal frameworks and CBN directives. He cautioned against non-compliance, affirming that stringent penalties await defaulters after the stipulated deadline.
Mandatory registration targets fraud prevention, loan accessibility, legal compliance, and regulatory adherence, ensuring robust financial security and operational transparency. It represents a crucial step towards promoting transparency and accountability within the financial sector.
Meanwhile, responses from PoS operators varied, with some expressing concerns over added burdens, especially in rural areas. Despite varied responses, stakeholders, including Nigeria’s Association of Mobile Money and Bank Agents, stress standardization and security’s critical role.
As the registration deadline looms, the government underscores its commitment to tackling financial crimes and promoting a robust business environment. With over 1.9 million PoS terminals deployed nationwide, the registration initiative holds significant implications for Nigeria’s financial landscape.
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