This decision comes due to non-compliance with the CAC’s registration directives.
In a public notice released on Friday, September 6, 2024, the CAC expressed that businesses failed to register, suggesting that they may be involved in “unwholesome activities”
The CAC’s notice reads
Meanwhile, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has dragged the CAC to court over the directive.
AMMBAN argues that the CAC’s registration mandate is illegal, asserting that the mandatory registration imposes undue burdens on fintech business owners.
Palmpay, one of the fintech companies, previously instructed PoS operators in its network to comply with the directives.
According to Umuteme Enakeno, head of marketing and communication at PalmPay, failure to comply will result in accounts being frozen after the deadline.
In related news, TimesNow.com.ng reported that Nigerian banks and fintech companies are preparing to block the accounts of Point of Sale (PoS) operators who have not registered their businesses with the Corporate Affairs Commission (CAC).
The memo addressed all non-individuals involved in agent banking to promptly register their businesses with the CAC in accordance with Section 863 of the Companies and Allied Matters Act (CAMA) 2020.
The directive requires that all PoS terminals—whether operated by agents, merchants, or individuals—must be registered.
Proofread by Kola Muhammed, journalist and copyeditor at TimesNow.com.ng
Source: TimesNow.com.ng
