CAC issues final warning to unregistered POS operators, threatens shutdown and legal action

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The Corporate Affairs Commission has reminded Point of Sale operators across Nigeria that the deadline for business registration, initially announced on July 7, 2024, has expired as of September 5, 2024.

In a statement released on Friday, the Commission expressed concerns over inadequate compliance with the directive, despite a large number of PoS operators in the country.

However, the Commission commended operators who have taken steps to formalize their businesses, praising their “positive attitudes” towards compliance.

The Commission noted with concern the significant number of operators who have not adhered to the directive.

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The Commission warned that measures may be taken against non-compliant operators, including the shutdown of non-compliant businesses and other severe legal consequences.

“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 statement read.

The Federal Government, through the Corporate Affairs Commission, had previously set a two-month deadline for POS operators to register their agents, merchants, and individuals with the Commission in compliance with legal requirements and the directives of the Central Bank of Nigeria.

This directive was issued in response to a rise in fraud incidents involving POS terminals and the CBN’s plans to prohibit trading in cryptocurrencies and other virtual currencies.

A report from the Nigeria Inter-Bank Settlement System Plc revealed that POS terminals were involved in 26.37 percent of fraud incidents in 2023.

The Commission stated that the registration initiative aims to reduce fraud within the system, as well as combat kidnapping and the payment of ransoms.