The Corporate Affairs Commission (CAC) has ignited a fresh wave of tension within Nigeria's agent banking sector by issuing a stern new deadline for Point of Sale (PoS) operators to formally register their businesses. The regulatory body has warned that failure to comply will result in arrests and the shutdown of unregistered operations.
Registration Push Meets Stiff Resistance
This latest directive follows the inauguration of a dedicated bulk registration centre by the CAC, aimed specifically at processing the thousands of PoS agents across the country. The centre was established to manage anticipated long queues and streamline the incorporation process, which the commission deems critical for transparency and accountability in the multi-billion naira daily transaction space.
However, the move to formalize the booming but largely informal sector has been met with significant pushback. Major agent associations have resisted the mandatory policy, arguing it imposes undue financial and administrative burdens on small-scale operators. These entrepreneurs are already grappling with challenges like inflation, network disruptions, and insecurity.
The resistance escalated to the point where several groups threatened legal action against the CAC. They contended the directive lacked clear legal backing and unfairly targeted micro-business owners who depend on PoS services as their primary source of income.
Extended Deadline Fails to Boost Compliance
In response to the mounting pressure and potential for litigation, the CAC initially softened its stance by extending the original deadline for registration. The commission urged operators to use the grace period to complete the necessary documentation.
Despite this concession, compliance rates remained disappointingly low. On September 6, 2024, the CAC revealed that a significant number of PoS operators had still not registered their businesses even after the extension. This low turnout highlighted deeper issues, including a lack of awareness, concerns over legality, and an unwillingness to bear registration costs in a fragmented industry that ranges from large networks to single kiosks in rural areas.
Enforcement Looms as Deadline Passes
With the extended deadline now closed, the CAC has signaled a shift from persuasion to enforcement. The commission has explicitly warned that operators continuing to defy the order will face sanctions as stipulated by law. This includes the potential shutdown of businesses operating without formal recognition.
The CAC maintains that this enforcement step is necessary to protect consumers, reduce fraud risks, and ensure accountability. This standoff underscores the broader struggle to regulate Nigeria's informal economy while promoting financial inclusion and protecting small-scale entrepreneurship.
The outcome of this conflict is poised to significantly shape the future landscape of agent banking in Nigeria. In a related development, financial technology companies like Opay, Palmpay, and Moniepoint have announced plans to increase SMS alert fees starting June 1, 2025, citing a 50% hike in tariffs from telecommunications companies.
