The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) is gearing up to take legal action against the Corporate Affairs Commission (CAC) over the mandatory registration directive imposed on Point of Sale (POS) operators. Fasasi Sarafadeen, the President of the association, criticized the directive, asserting that it contradicts the Companies and Allied Matters Act (CAMA) of 2004.
Sarafadeen highlighted that according to section 863(1) of CAMA, the CAC has no jurisdiction over individuals operating as sole proprietors, and therefore, the directive to register individual POS agents is erroneous. He emphasized that only non-individual agents, operating under registered or unregistered business names, should be subject to CAC registration requirements.
The AMMBAN president clarified the distinction between individual and non-individual POS agents, explaining that individual agents operate under their names, while non-individual agents operate under business names. He stressed that the CAC’s jurisdiction extends only to non-individual agents, leaving individual agents exempt from registration.
Additionally, Sarafadeen criticized the CAC’s focus on targeting sub-agents, which he described as independent branches of registered companies. He argued that sub-agents operate under the umbrella of registered companies and should not be subjected to CAC registration requirements.
Sarafadeen urged the CAC to prioritize addressing the high failure rate of registered businesses in Nigeria instead of enforcing regulations on individual POS agents. He emphasized the importance of supporting entrepreneurship and job creation, aligning with President Bola Tinubu’s agenda of promoting economic growth and reducing unemployment.
The AMMBAN president appealed to President Tinubu, the Senate, and the House of Representatives to intervene in the matter and protect the interests of POS operators. He emphasized the significant role of agent banking in job creation and financial inclusion, urging policymakers to avoid policies that could hinder entrepreneurship and exacerbate unemployment.
The directive for POS operators to register with the CAC came amid concerns over fraud incidents involving POS terminals and the government’s crackdown on cryptocurrency trading. The CBN’s recent directive to fintech firms to warn against cryptocurrency trading and the EFCC’s efforts to freeze bank accounts linked to illegal forex transactions have further heightened regulatory scrutiny in the financial sector.
